UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4676

Harbor Funds

(Exact name of registrant as specified in charter)

111 South Wacker Drive, 34^th Floor

Chicago, IL 60606-4302

(Address of principal executive offices) (Zip code)

David G. Van Hooser HARBOR FUNDS 111 South Wacker Drive, 34^th Floor Chicago, IL 60606-4302 Christopher P. Harvey, Esq. WILMER CULTER PICKERING HALE AND DORR LLP 60 State Street Boston, Massachusetts 02109

(Name and address of agent for service )

Registrant’s telephone number, including area code: (312) 443-4400

Date of fiscal year end: October 31

Date of reporting period: July 31, 2008

ITEM 1 – SCHEDULE OF INVESTMENTS

The following is a copy of the schedules as of the close of the reporting period as set forth in Sections 210.12-12 – 12-14 of Regulation S-X [17 CRF 210.12-12 – 12-14]:

Harbor Funds’ schedules of investments as of July 31, 2008 are included.

ITEM 2 – CONTROLS AND PROCEDURES

(a) The Principal Executive and Financial Officers concluded that the registrant’s disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 3 – EXHIBITS

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed this 24^th day of September, 2008 on its behalf by the undersigned, thereunto duly authorized.

HARBOR FUNDS
By:	/s/ David G. Van Hooser
	David G. Van Hooser Chairman, President, Trustee And Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

BY:	/s/ David G. Van Hooser David G. Van Hooser	Chairman, President, Trustee and Chief Executive Officer	September 24, 2008
By:	/s/ Anmarie Kolinski Anmarie Kolinski	Treasurer and Chief Financial Officer	September 24, 2008

Quarterly Schedule of

Portfolio Holdings

July 31, 2008

Equity Funds

Domestic Equity

Harbor Capital Appreciation Fund

Harbor Mid Cap Growth Fund

Harbor Small Cap Growth Fund

Harbor Small Company Growth Fund

Harbor Large Cap Value Fund

Harbor Mid Cap Value Fund

Harbor SMID Value Fund

Harbor Small Cap Value Fund

International Equity

Harbor International Fund

Harbor International Growth Fund

Harbor Global Value Fund

Table of Contents

Harbor Domestic Equity Funds
Portfolios of Investments
HARBOR CAPITAL APPRECIATION FUND	2
HARBOR MID CAP GROWTH FUND	4
HARBOR SMALL CAP GROWTH FUND	7
HARBOR SMALL COMPANY GROWTH FUND	9
HARBOR LARGE CAP VALUE FUND	11
HARBOR MID CAP VALUE FUND	14
HARBOR SMID VALUE FUND	17
HARBOR SMALL CAP VALUE FUND	19

Harbor International Equity Funds
Portfolios of Investments
HARBOR INTERNATIONAL FUND	21
HARBOR INTERNATIONAL GROWTH FUND	24
HARBOR GLOBAL VALUE FUND	26
Notes to Portfolios of Investments	28

Harbor Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.0%)

COMMON STOCKS—97.0%
Shares		Value (000s)
AEROSPACE & DEFENSE—3.3%
2,226,600	Raytheon Co.	$	126,760
2,464,690	United Technologies Corp.		157,691
			284,451
BEVERAGES—2.8%
1,695,000	Coca-Cola Co.		87,292
2,226,050	PepsiCo Inc.		148,166
			235,458
BIOTECHNOLOGY—9.5%
2,323,200	Celgene Corp.*		175,378
2,417,100	Genentech Inc.*		230,229
7,577,100	Gilead Sciences Inc.*		409,012
			814,619
CAPITAL MARKETS—4.0%
6,673,100	Charles Schwab Corp.		152,747
706,100	Goldman Sachs Group Inc.		129,951
1,386,900	Lazard Ltd.1		56,599
			339,297

COMMON STOCKS—Continued
Shares		Value (000s)
CHEMICALS—3.6%
2,549,500	Monsanto Co.	$	303,671
COMMUNICATIONS EQUIPMENT—8.8%
10,625,490	Cisco Systems Inc.*		233,655
3,777,900	Nokia OYJ ADR (FIN)2		103,212
3,810,030	QUALCOMM Inc.		210,847
1,635,200	Research In Motion Ltd.*		200,835
			748,549
COMPUTERS & PERIPHERALS—6.7%
1,771,620	Apple Inc.*		281,599
5,432,300	Hewlett-Packard Co.		243,367
1,751,200	NetApp Inc.*		44,743
			569,709
DIVERSIFIED FINANCIAL SERVICES—0.5%
979,400	NYSE Euronext		46,267
ELECTRICAL EQUIPMENT—1.7%
5,670,500	ABB Ltd ADR (SWS)2		148,680
ENERGY EQUIPMENT & SERVICES—8.4%
589,900	First Solar Inc.*		168,186
4,774,200	Halliburton Co.		213,980
3,259,200	Schlumberger Ltd.		331,135
			713,301
FOOD & STAPLES RETAILING—5.5%
2,199,400	Costco Wholesale Corp.		137,859
4,400,500	CVS/Caremark Corp.		160,618
2,975,400	Wal-Mart Stores Inc.		174,418
			472,895
HEALTH CARE EQUIPMENT & SUPPLIES—5.2%
1,327,400	Alcon Inc.		228,884
3,146,600	Baxter International Inc.		215,888
			444,772
HEALTH CARE PROVIDERS & SERVICES—1.6%
2,726,100	Medco Health Solutions Inc.*		135,160
HOTELS, RESTAURANTS & LEISURE—1.0%
3,327,400	Marriott International Inc. Cl. A1		86,213
HOUSEHOLD PRODUCTS—2.2%
2,513,000	Colgate-Palmolive Co.		186,640
INDUSTRIAL CONGLOMERATES—1.2%
2,149,400	McDermott International Inc.*		102,462
INTERNET & CATALOG RETAIL—2.5%
2,747,200	Amazon.com Inc.*1		209,721
INTERNET SOFTWARE & SERVICES—4.4%
1,425,400	Akamai Technologies Inc.*1		33,269
717,000	Google Inc. Cl. A*		339,679
			372,948
IT SERVICES—3.9%
3,942,700	Infosys Technologies Ltd. ADR (IND)1,2		155,303
2,401,900	VISA Inc.*		175,483
			330,786
LIFE SCIENCE TOOLS & SERVICES—2.1%
2,967,800	Thermo Fisher Scientific Inc*1		179,611
MEDIA—1.5%
4,151,000	Walt Disney Co.		125,983

2

Harbor Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
OIL, GAS & CONSUMABLE FUELS—3.6%
2,107,200	Occidental Petroleum Corp.	$	166,111
2,393,900	Southwestern Energy Co.*		86,922
1,228,300	XTO Energy Inc.		58,013
			311,046
PHARMACEUTICALS—7.1%
3,541,300	Abbott Laboratories		199,517
3,055,900	Elan Corp. plc ADR (IE)*2		61,271
4,139,300	Mylan Inc.*1		53,686
3,838,600	Teva Pharmaceutical Industries Ltd. ADR (IL)2		172,123
3,054,000	Wyeth		123,748
			610,345
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—0.8%
5,854,200	Nvidia Corp.*		66,972
SOFTWARE—3.8%
4,222,650	Adobe Systems Inc.*		174,607
5,847,440	Microsoft Corp.		150,396
			325,003
TEXTILES, APPAREL & LUXURY GOODS—1.3%
1,829,100	Nike Inc. Cl. B		107,332
TOTAL COMMON STOCKS     (Cost $7,148,535)			8,271,891

SHORT-TERM INVESTMENTS—4.6%
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	239,067	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.100% collateralized by U.S. Treasury Notes (market value $239,074)	$	239,067
Shares
	SECURITIES LENDING COLLATERAL
	147,981,321	State Street Navigator Securities Lending Prime Portfolio (1-day yield of 2.680%)		147,981
	TOTAL SHORT-TERM INVESTMENTS     (Cost $387,048)			387,048
	TOTAL INVESTMENTS—101.6%     (Cost $7,535,583)			8,658,939
	CASH AND OTHER ASSETS, LESS LIABILITIES—(1.6)%			(127,765	)
	TOTAL NET ASSETS—100.0%		$	8,531,174

* Non-income producing security.

1 A portion or all of this security was out on loan at July 31, 2008.

2 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

(FIN) Finland.

(IE) Ireland.

(IL) Israel.

(IND) India.

(SWS) Switzerland.

The accompanying notes are an integral part of the portfolio of investments.

3

Harbor Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 8.0%)

COMMON STOCKS—92.0%
Shares		Value (000s)
AEROSPACE & DEFENSE—1.7%
369,895	Rolls-Royce Group plc (UK)	$	2,627
104,900	Teledyne Technologies Inc.*		6,598
			9,225
BIOTECHNOLOGY—5.7%
41,300	Alexion Pharmaceuticals Inc.*		3,872
179,100	Alkermes Inc.*1		2,821
176,400	Amylin Pharmaceuticals Inc.*1		5,565
131,525	Cephalon Inc.*1		9,622
31,800	ImClone Systems Inc.*		2,033
89,700	Onyx Pharmaceuticals Inc.*1		3,633
152,100	Regeneron Pharmaceuticals Inc.*1		3,329

COMMON STOCKS—Continued
Shares		Value (000s)
BIOTECHNOLOGY—Continued
36,300	ZymoGenetics Inc.*1	$	312
			31,187
CAPITAL MARKETS—0.9%
74,497	Julius Baer Holding Ltd. (SWS)		4,765
CHEMICALS—3.2%
137,800	FMC Corp.		10,248
134,500	Terra Industries Inc.1		7,263
			17,511
COMMERCIAL BANKS—0.4%
71,400	Comerica Inc.		2,051
COMMERCIAL SERVICES & SUPPLIES—1.3%
252,400	Covanta Holding Corp.*1		7,103
COMMUNICATIONS EQUIPMENT—1.2%
104,900	Comverse Technology Inc.*		1,571
178,200	NICE Systems Ltd. ADR (IL)*2		5,268
			6,839
COMPUTERS & PERIPHERALS—1.1%
241,700	NetApp Inc.*		6,175
CONSTRUCTION & ENGINEERING—2.0%
226,100	Aecom Technology Corp.*		6,437
134,100	Chicago Bridge & Iron Company N.V. (NET)		4,394
			10,831
CONTAINERS & PACKAGING—0.9%
33,100	Ball Corp.		1,476
321,711	Rexam plc (UK)		2,425
47,400	Sealed Air Corp.1		1,029
			4,930
ELECTRONIC EQUIPMENT & INSTRUMENTS—4.1%
269,800	FLIR Systems Inc.*1		10,992
46,500	Itron Inc.*		4,293
1,520,700	Kingboard Chemical Holdings Ltd. (HK)		7,310
			22,595
FOOD & STAPLES RETAILING—1.5%
213,800	BJ’s Wholesale Club Inc.*1		8,024
HEALTH CARE EQUIPMENT & SUPPLIES—2.7%
175,800	Mindray Medical Intl. Ltd. Cl. A Sponsord ADR (CHN)1,2		7,023
162,700	St. Jude Medical Inc.*		7,579
			14,602
HEALTH CARE PROVIDERS & SERVICES—1.8%
172,900	McKesson Corp.		9,681
HOTELS, RESTAURANTS & LEISURE—0.3%
41,300	Ctrip.com International Ltd. ADR (CHN)2		1,862
HOUSEHOLD DURABLES—3.5%
456,600	Jarden Corp.*1		10,972
148,400	Snap-on Inc.		8,353
			19,325
INTERNET SOFTWARE & SERVICES—3.4%
502,900	Ariba Inc.*		8,253
8,000	Baidu.com Inc. Sponsored ADR (CHN)*2		2,777
96,700	Equinix Inc.*1		7,868
			18,898

4

Harbor Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
IT SERVICES—3.3%
79,600	Global Payments Inc.	$	3,525
539,500	Western Union Co.		14,912
			18,437
LIFE SCIENCES TOOLS & SERVICES—3.1%
128,400	Charles River Laboratories International Inc.*		8,533
220,100	Pharmaceutical Product Development Inc.		8,395
			16,928
MACHINERY—7.1%
27,700	Cummins Inc.		1,838
43,010	Flowserve Corp.		5,735
1,006,024	Hansen Transmissions Int. (BEL)		6,261
217,600	Manitowoc Inc.		5,736
129,500	PACCAR Inc.1		5,447
161,000	Pall Corp.		6,508
159,600	Titan International Inc.1		7,375
			38,900
MEDIA—4.7%
237,800	DreamWorks Animation SKG Cl. A*		7,063
216,900	Focus Media Holding Ltd. ADR (CHN)*1,2		6,444
196,500	Interactive Data Corp.		5,659
195,700	Marvel Entertainment Inc.*1		6,791
			25,957
METALS & MINING—3.8%
85,900	Century Aluminum Co.*		5,104
54,900	Freeport-McMoRan Copper & Gold Inc. CL B		5,312
171,000	Steel Dynamics Inc.		5,417
32,500	United States Steel Corp.1		5,212
			21,045
MULTILINE RETAIL—1.0%
134,900	Kohl’s Corp.*		5,654
OIL, GAS & CONSUMABLE FUELS—9.3%
119,300	Arch Coal Inc.		6,718
238,700	Cameco Corp. ADR (CAN)2		8,576
142,600	Chesapeake Energy Corp.1		7,151
82,900	CONSOL Energy Inc.		6,167
268,000	El Paso Corp.		4,805
66,300	EOG Resources Inc.1		6,665
98,400	Forest Oil Corp.*		5,612
74,700	Ultra Petroleum Corp.*		5,332
			51,026
PHARMACEUTICALS—3.2%
101,300	Auxilium Pharmaceuticals Inc.*1		3,758
263,377	Elan Corp. plc ADR (IE)*2		5,281
112,000	Medicines Co.*1		2,488
322,900	Shionogi & Co. Ltd. (JP)		6,330
			17,857
ROAD & RAIL—1.1%
112,400	Kansas City Southern*1		6,182
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—2.2%
235,200	Atheros Communications, Inc.*		7,291
144,100	Lam Research Corp.*		4,739
			12,030

COMMON STOCKS—Continued
Shares		Value (000s)
SOFTWARE—9.6%
214,400	BMC Software, Inc.*	$	7,052
238,900	McAfee Inc.*		7,824
138,500	Micros Systems Inc.*		4,388
200,300	Net 1 UEPS Technologies Inc.*		4,723
324,700	Nuance Communications Inc.*		5,039
478,400	Red Hat Inc.*		10,228
185,100	Solera Holdings Inc.*		5,366
82,216	Ubisoft Entertainment SA (FR)*		8,142
			52,762
SPECIALTY RETAIL—5.2%
182,600	Advance Auto Parts Inc.		7,503
94,600	Aeropostale Inc.*		3,051
305,700	Dick’s Sporting Goods Inc.*		5,365
371,500	Gap Inc.		5,989
298,150	Staples Inc.		6,708
			28,616
TEXTILES, APPAREL & LUXURY GOODS—1.2%
510,700	Asics Corp. (JP)		4,776
157,700	Liz Claiborne Inc.1		2,061
			6,837
WIRELESS TELECOMMUNICATION SERVICES—1.5%
513,200	MetroPCS Communications Inc.*1		8,534
TOTAL COMMON STOCKS     (Cost $485,139)			506,369

5

Harbor Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS—Continued

SHORT-TERM INVESTMENTS—30.2%
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	35,508	Repurchase Agreement with Bank of America dated July 31, 2008 due August 1, 2008 at 2.030% collateralized by U.S. Treasury Notes (market value $35,510)	$	35,508
Shares
	SECURITIES LENDING COLLATERAL
	132,261,448	State Street Navigator Securities Lending Prime Portfolio (1-day yield of 2.680%)		132,261
	TOTAL SHORT-TERM INVESTMENTS     (Cost $167,769)			167,769
	TOTAL INVESTMENTS—122.2%     (Cost $652,908)			674,138
	CASH AND OTHER ASSETS, LESS LIABILITIES—(22.2)%			(123,562	)
	TOTAL NET ASSETS—100.0%		$	550,576

* Non-income producing security.

1 A portion or all of this security was out on loan at July 31, 2008.

2 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

(BEL) Belgium.

(CAN) Canada.

(CHN) China.

(FR) France.

(HK) Hong Kong.

(IE) Ireland.

(IL) Israel.

(JP) Japan.

(NET) Netherlands.

(SWS) Switzerland.

(UK) United Kingdom.

The accompanying notes are an integral part of the portfolio of investments.

6

Harbor Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 4.9%)

COMMON STOCKS—95.1%
Shares		Value (000s)
AEROSPACE & DEFENSE—1.0%
139,900	TransDigm Group Inc.*	$	5,150
BIOTECHNOLOGY—11.6%
241,210	Alexion Pharmaceuticals Inc.*		22,613
806,100	Human Genome Sciences Inc.*		5,344
345,150	OSI Pharmaceuticals Inc.*		18,165
82,550	United Therapeutics Corp.*		9,360
198,350	Vertex Pharmaceuticals Inc.*		6,843
			62,325
COMMERCIAL BANKS—1.9%
355,450	Signature Bank*		10,461
COMMERCIAL SERVICES & SUPPLIES—1.9%
425,400	GEO Group Inc.*		10,227

COMMON STOCKS—Continued
Shares		Value (000s)
COMMUNICATIONS EQUIPMENT—2.4%
419,650	Polycom Inc.*	$	9,904
201,800	Riverbed Technology Inc.*		3,203
			13,107
CONSTRUCTION & ENGINEERING—1.5%
292,400	Perini Corp.*		8,000
DIVERSIFIED CONSUMER SERVICES—5.6%
73,400	American Public Education Inc.*		3,335
635,529	Corinthian Colleges Inc.*		10,010
120,400	New Oriental Education & Technology Group Inc. ADR (CHN)*1		8,428
951,700	Stewart Enterprises Inc. Cl. A		8,480
			30,253
ENERGY EQUIPMENT & SERVICES—11.8%
426,550	Complete Production Services Inc.*		13,581
190,710	Exterran Holdings Inc.*		10,760
247,650	NATCO Group Inc. Cl. A*		11,801
237,350	Oil States International Inc.*		13,026
306,150	Superior Energy Services Inc.*		14,521
			63,689
FOOD PRODUCTS—0.5%
622,645	Agria Corp. ADR (CHN)*1		2,771
HEALTH CARE EQUIPMENT & SUPPLIES—6.9%
851,950	ev3 Inc.*		8,221
478,707	Immucor Inc.*		14,423
319,900	Masimo Corp.*		12,083
211,000	Palomar Medical Technologies Inc.*		2,699
			37,426
HEALTH CARE PROVIDERS & SERVICES—2.3%
317,600	Gentiva Health Services Inc.*		8,112
316,450	Sun Healthcare Group Inc.*		4,522
			12,634
HOTELS, RESTAURANTS & LEISURE—0.3%
188,164	Texas Roadhouse Inc.*		1,746
INSURANCE—1.0%
229,350	Tower Group Inc.		5,225
INTERNET SOFTWARE & SERVICES—4.8%
517,150	CyberSource Corp.*		9,179
1,644,776	SkillSoft plc ADR (IE)*1		16,859
			26,038
IT SERVICES—1.3%
1,112,250	Sapient Corp.*		7,185
LIFE SCIENCES TOOLS & SERVICES—1.8%
139,900	Dionex Corp.*		9,726
MACHINERY—6.0%
326,154	Actuant Corp. Cl. A		9,935
114,650	Colfax Corporation*		3,129
85,870	Lindsay Corp.		7,923
337,628	RBC Bearings Inc.*		11,233
			32,220
MARINE—1.0%
286,650	Safe Bulkers Inc.*		5,432
METALS & MINING—0.9%
373,800	Horsehead Holding Corp.*		4,560

7

Harbor Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
OIL, GAS & CONSUMABLE FUELS—6.4%
290,100	Aegean Marine Petroleum Network Inc. (GRC)	$	10,502
89,450	Carrizo Oil & Gas Inc.*		4,503
136,450	Foundation Coal Holdings Inc.		8,105
424,250	Quicksilver Resources Inc.*		11,098
			34,208
PERSONAL PRODUCTS—0.8%
348,600	Bare Escentuals Inc.*		4,023
PHARMACEUTICALS—3.3%
1,210,850	Adolor Corp.*		4,856
517,150	Medicines Co.*		11,486
579,050	Santarus Inc.*		1,384
			17,726
REAL ESTATE INVESTMENT TRUSTS (REITs)—0.9%
509,100	DiamondRock Hospitality Co.		4,694
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—5.4%
368,050	ATMI Inc.*		8,292
895,815	ON Semiconductor Corp.*		8,412
1,730,250	PMC-Sierra Inc.*		12,527
			29,231
SOFTWARE—10.7%
570,019	Informatica Corp.*		9,229
354,323	Net 1 UEPS Technologies Inc.*		8,355
1,155,800	Nuance Communications Inc.*		17,938
697,150	Quest Software Inc.*		10,534
233,900	Solera Holdings Inc.*		6,781
231,541	Verint Systems Inc.*		4,978
			57,815

COMMON STOCKS—Continued
Shares			Value (000s)
	SPECIALTY RETAIL—1.0%
	526,300	Bebe Stores Inc.	$	5,458
	TEXTILES, APPAREL & LUXURY GOODS—0.9%
	408,200	Iconix Brand Group Inc.*		4,898
	TRADING COMPANIES & DISTRIBUTORS—1.2%
	128,400	Watsco Inc.		6,403
	TOTAL COMMON STOCKS     (Cost $433,201)			512,631
SHORT-TERM INVESTMENTS—4.2%
	(Cost $22,643)
Principal Amount (000s)
	REPURCHASE AGREEMENTS
$	22,643	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank Notes (market value $23,100)		22,643
	TOTAL INVESTMENTS—99.3%     (Cost $455,844)			535,274
	CASH AND OTHER ASSETS, LESS LIABILITIES—0.7%			3,960
	TOTAL NET ASSETS—100.0%		$	539,234

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

(CHN) China.

(GRC) Greece.

(IE) Ireland.

The accompanying notes are an integral part of the portfolio of investments.

8

Harbor Small Company Growth Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.9%)

COMMON STOCKS—96.1%
Shares		Value (000s)
AEROSPACE & DEFENSE—2.5%
20,815	LMI Aerospace Inc.*	$	384
7,080	Triumph Group Inc.		375
			759
AIR FREIGHT & LOGISTICS—1.7%
11,000	Atlas Air Worldwide Holdings Inc.*		529

COMMON STOCKS—Continued
Shares		Value (000s)
BIOTECHNOLOGY—1.0%
14,080	Cubist Pharmaceuticals Inc.*	$	319
BUILDING PRODUCTS—1.5%
3,565	Ameron International Corp.		461
CAPITAL MARKETS—1.0%
15,605	FCStone Group Inc.*		301
CHEMICALS—1.2%
16,176	Zoltek Companies Inc.*		361
COMMERCIAL SERVICES & SUPPLIES—3.6%
32,073	Cenveo Inc.*		296
27,300	Hill International Inc.*		463
40,780	On Assignment Inc.*		348
			1,107
COMMUNICATIONS EQUIPMENT—2.4%
10,000	CommScope Inc.*		446
38,000	Harmonic Inc.*		296
			742
CONSTRUCTION & ENGINEERING—1.0%
5,500	Northwest Pipe Co.*		320
CONSUMER FINANCE—1.6%
984	EZCORP Inc. Cl. A*		18
13,929	World Acceptance Corp.*		456
			474
DISTRIBUTORS—1.9%
28,770	LKQ Corp.*		590
ELECTRICAL EQUIPMENT—3.0%
24,605	JA Solar Holdings Co Ltd. Sponsored ADR (CYM)*1		373
11,799	Woodward Governor Co.		531
			904
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.6%
43,350	TTM Technologies Inc.*		488
ENERGY EQUIPMENT & SERVICES—9.1%
8,280	Dawson Geophysical Co.*		543
5,335	Dril-Quip Inc.*		289
22,865	Global Industrials Ltd.*		273
23,280	ION Geophysical Corp.*		372
16,280	Key Energy Services Inc.*		261
15,710	Pioneer Drilling Co.*		250
6,685	Superior Energy Services Inc.*		317
12,435	Willbros Group Inc. ADR (PAN)*1		467
			2,772
FOOD & STAPLES RETAILING—3.4%
11,480	Andersons Inc.		522
7,000	Central European Distribution Corp.*		511
			1,033
HEALTH CARE EQUIPMENT & SUPPLIES—4.2%
19,410	Cynosure Inc.*		480
10,240	Inverness Medical Innovations Inc.*		345
13,975	ZOLL Medical Corp.*		440
			1,265
HEALTH CARE PROVIDERS & SERVICES—9.3%
19,608	Bio-Reference Laboratories Inc.*		507
12,854	Genoptix Inc.*		375
19,635	inVentiv Health Inc.*		474

9

Harbor Small Company Growth Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
HEALTH CARE PROVIDERS & SERVICES—Continued
14,650	IPC The Hospitalist Co Inc.*	$	316
19,760	LHC Group Inc.*		554
12,625	PharMerica Corp.*		299
22,000	Sun Healthcare Group Inc.*		314
			2,839
HEALTH CARE TECHNOLOGY—0.9%
14,240	Phase Forward Inc.*		262
HOTELS, RESTAURANTS & LEISURE—3.0%
19,355	Scientific Games Corp. Cl. A*		587
36,000	Texas Roadhouse Inc.*		334
			921
HOUSEHOLD DURABLES—1.9%
24,320	Jarden Corp.*		584
INSURANCE—1.0%
14,488	National Interstate Corp.		291
INTERNET SOFTWARE & SERVICES—3.9%
41,055	Interwoven Inc.*		578
12,585	j2 Global Communications Inc.*		302
45,083	Website Pros Inc.*		300
			1,180
LIFE SCIENCES TOOLS & SERVICES—1.3%
10,000	Kendle International Inc.*		412
MACHINERY—6.0%
10,698	Actuant Corp. Cl. A		326
19,625	Barnes Group Inc.		443
50,245	Flow International Corp.*		335
8,582	Robbins & Myers Inc.		436
10,228	Titan Machinery Inc.*		280
			1,820
MARINE—2.6%
5,045	DryShips Inc. ADR (GRC)1		389
33,100	Horizon Lines Inc.		391
			780
MEDIA—1.0%
17,365	DG FastChannel*		295
OIL, GAS & CONSUMABLE FUELS—1.1%
11,431	ATP Oil & Gas Corp.*		325
PERSONAL PRODUCTS—1.3%
6,000	Chattem Inc.*		387
PHARMACEUTICALS—3.3%
17,060	Medicines Co.*		379
21,239	Sciele Pharma Inc.		396

COMMON STOCKS—Continued
Shares		Value (000s)
PHARMACEUTICALS—Continued
18,136	Viropharma Inc.*	$	223
			998
ROAD & RAIL—3.0%
25,550	Heartland Express Inc.		435
12,805	Old Dominion Freight Line Inc.*		470
			905
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—7.9%
21,870	Diodes Inc.*		568
78,320	Emcore Corp.*		385
25,000	IXYS Corp.*		306
15,000	Monolithic Power Systems Inc.*		326
63,285	ON Semiconductor Corp.*		594
30,090	Silicon Motion Technology Corp. ADR (TW)*1		224
			2,403
SOFTWARE—5.2%
29,189	Double-Take Software Inc.*		322
12,685	Micros Systems Inc.*		402
42,840	Radiant Systems Inc.*		489
51,271	Smith Micro Software Inc.*		369
			1,582
SPECIALTY RETAIL—1.3%
89,335	Wet Seal Inc.*		392
TEXTILES, APPAREL & LUXURY GOODS—1.4%
35,000	Iconix Brand Group Inc.*		420
TOTAL COMMON STOCKS     (Cost $30,226)			29,221

SHORT-TERM INVESTMENTS—5.5%
	(Cost $1,675)
Principal Amount (000s)
	REPURCHASE AGREEMENTS
$	1,675	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal National Mortgage Association (market value $1,710)		1,675
	TOTAL INVESTMENTS—101.6%     (Cost $31,901)			30,896
	CASH AND OTHER ASSETS, LESS LIABILITIES—(1.6)%			(499	)
	TOTAL NET ASSETS—100.0%		$	30,397

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

(CYM) Cayman Islands.

(GRC) Greece.

(PAN) Panama.

(TW) Taiwan.

The accompanying notes are an integral part of the portfolio of investments.

10

Harbor Large Cap Value Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.3%)

COMMON STOCKS—96.7%
Shares		Value (000s)
AEROSPACE & DEFENSE—5.8%
30,800	Boeing Co.	$	1,882
35,200	General Dynamics Corp.		3,138
27,500	L-3 Communications Holdings Inc.		2,714
51,500	Lockheed Martin Corp.		5,373
			13,107
AIR FREIGHT & LOGISTICS—1.2%
42,500	United Parcel Service Inc. Cl. B		2,681
AIRLINES—0.7%
172,100	Cathay Pacific Airways Ltd. ADR (HK)1		1,648
BEVERAGES—0.9%
28,000	Diageo plc ADR (UK)1		1,971
CAPITAL MARKETS—3.1%
12,100	BlackRock Inc. Cl. A		2,622
22,900	Franklin Resources Inc.		2,304
54,100	Morgan Stanley		2,136
			7,062
CHEMICALS—0.4%
30,100	Dow Chemical Co.		1,003
COMMERCIAL BANKS—5.4%
39,200	HSBC Holdings plc ADR (UK)1		3,234
130,100	U.S. Bancorp		3,982
67,400	Wachovia Corp.		1,164
127,600	Wells Fargo & Co.		3,862
			12,242
COMMUNICATIONS EQUIPMENT—3.8%
178,200	Corning Inc.		3,566
42,600	Harris Corp.		2,051
74,300	Nokia OYJ ADR (FIN)1		2,030
18,900	QUALCOMM Inc.		1,046
			8,693
COMPUTERS & PERIPHERALS—2.1%
17,000	International Business Machines Corp.		2,176
173,600	Seagate Technology		2,599
			4,775
CONSTRUCTION MATERIALS—1.6%
49,700	Holcim Ltd.—Registered (SWS)		3,547
DIVERSIFIED FINANCIAL SERVICES—5.8%
143,200	Bank of America Corp.		4,711
189,800	Citigroup Inc.		3,547
119,400	JPMorgan Chase & Co.		4,851
			13,109
DIVERSIFIED TELECOMMUNICATION SERVICES—2.5%
97,200	AT&T Inc.		2,995
76,800	Verizon Communications Inc.		2,614
			5,609
ELECTRIC UTILITIES—3.4%
49,500	E.ON AG ADR (GER)1		3,131
6,500	Exelon Corp.		511
64,600	FPL Group Inc.		4,169
			7,811
ENERGY EQUIPMENT & SERVICES—2.8%
42,100	Schlumberger Ltd.		4,277
14,459	Transocean Inc.		1,967
			6,244

11

Harbor Large Cap Value Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
FOOD & STAPLES RETAILING—3.1%
16,600	Costco Wholesale Corp.	$	1,040
59,600	Shoppers Drug Mart Corp. (CAN)		3,164
29,600	Wal-Mart de Mexico SAB de CV ADR (MEX)1		1,201
27,000	Wal-Mart Stores Inc.		1,583
			6,988
FOOD PRODUCTS—0.9%
71,700	Archer Daniels Midland Co.		2,053
GAS UTILITIES—1.2%
47,800	Sempra Energy		2,684
HEALTH CARE EQUIPMENT & SUPPLIES—2.3%
96,400	Medtronic Inc.		5,093
HOTELS, RESTAURANTS & LEISURE—2.4%
47,700	Carnival Corp.		1,762
59,600	McDonald’s Corp.		3,563
			5,325
HOUSEHOLD DURABLES—0.9%
57,800	Garmin Ltd.		2,062
HOUSEHOLD PRODUCTS—2.1%
71,800	Procter & Gamble Co.		4,701
INDUSTRIAL CONGLOMERATES—2.1%
166,900	General Electric Co.		4,722
INSURANCE—9.1%
53,400	ACE Ltd		2,707
93,400	Aflac Inc.		5,194
45,900	Allstate Corp.		2,121
123,100	American International Group Inc.		3,207
163,200	HCC Insurance Holdings Inc.		3,696
70,400	MetLife Inc.		3,574
			20,499
LEISURE EQUIPMENT & PRODUCTS—0.4%
49,900	Mattel Inc.		1,000
MACHINERY—0.5%
25,150	PACCAR Inc.		1,058
MEDIA—0.9%
70,400	Walt Disney Co.		2,137
METALS & MINING—0.6%
43,100	Alcoa Inc.		1,455
MULTILINE RETAIL—0.4%
35,000	Nordstrom Inc.		1,006
OIL, GAS & CONSUMABLE FUELS—12.8%
18,400	Apache Corp.		2,064
36,000	Chevron Corp.		3,044
1,428,000	CNOOC Ltd. (HK)*		2,149
26,800	Devon Energy Corp.		2,543
69,800	Exxon Mobil Corp.		5,614
94,800	Marathon Oil Corp.		4,690
54,500	Petro-Canada (CAN)		2,522
81,600	Total SA (FR)		6,288
			28,914
PHARMACEUTICALS—6.4%
109,400	Abbott Laboratories		6,164
62,400	Johnson & Johnson		4,273
56,800	Pfizer Inc.		1,060
67,800	Teva Pharmaceutical Industries Ltd. ADR (IL)1		3,040
			14,537

COMMON STOCKS—Continued
Shares		Value (000s)
REAL ESTATE INVESTMENT TRUSTS (REITs)—2.8%
13,200	Alexandria Real Estate Equities Inc.	$	1,363
58,900	British Land Co. plc (UK)		820
31,300	Corporate Office Properties Trust		1,217
23,300	ProLogis		1,139
10,000	Public Storage Inc.		819
11,100	Simon Property Group Inc.		1,028
			6,386
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.3%
238,800	Hongkong Land Holdings Ltd. (HK)*		986
ROAD & RAIL—0.5%
14,800	Norfolk Southern Corp.		1,064
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.9%
98,800	Intel Corp.		2,192
64,700	Microchip Technology Inc.		2,066
			4,258
SOFTWARE—1.8%
159,200	Microsoft Corp.		4,095
SPECIALTY RETAIL—0.5%
23,000	H&M Hennes & Mauritz Ab Series B (SW)		1,235
TEXTILES, APPAREL & LUXURY GOODS—1.2%
46,800	Nike Inc. Cl. B		2,746
TOBACCO—1.1%
123,000	Altria Group Inc.		2,503
WIRELESS TELECOMMUNICATION SERVICES—1.0%
21,100	America Movil SAB de CV Series L ADR (MEX)1		1,065
17,700	China Mobile Ltd. ADR (HK)1		1,183
			2,248
TOTAL COMMON STOCKS     (Cost $232,096)			219,257

12

Harbor Large Cap Value Fund

PORTFOLIO OF INVESTMENTS—Continued

SHORT-TERM INVESTMENTS—4.0%
	(Cost $8,991)
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	8,991	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank Notes (market value $9,175)	$	8,991
	TOTAL INVESTMENTS—100.7%     (Cost $241,087)			228,248
	CASH AND OTHER ASSETS, LESS LIABILITIES—(0.7)%			(1,674	)
	TOTAL NET ASSETS—100.0%		$	226,574

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

(CAN) Canada.

(FIN) Finland.

(FR) France.

(GER) Germany.

(HK) Hong Kong.

(IL) Israel.

(MEX) Mexico.

(SW) Sweden.

(SWS) Switzerland.

(UK) United Kingdom.

The accompanying notes are an integral part of the portfolio of investments.

13

Harbor Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 1.1%)

COMMON STOCKS—98.9%
Shares		Value (000s)
AEROSPACE & DEFENSE—0.6%
7,600	Goodrich Corp.	$	373
AUTO COMPONENTS—0.9%
21,900	American Axle & Manufacturing Holdings Inc.1		129
6,200	Autoliv Inc. (SW)1		242
9,000	Goodyear Tire & Rubber Co.*		177
			548
AUTOMOBILES—1.3%
19,900	Harley-Davidson Inc.		753
BEVERAGES—1.8%
19,900	Coca-Cola Enterprises Inc.1		337
18,300	Pepsi Bottling Group Inc.1		510
8,800	PepsiAmericas Inc.		208
			1,055
BUILDING PRODUCTS—1.9%
24,300	Lennox International Inc.1		868
13,300	Masco Corp.1		219
			1,087
CHEMICALS—3.9%
12,700	A. Schulman Inc.1		295
6,900	Eastman Chemical Co.1		414
11,800	Lubrizol Corp.		588
8,000	PPG Industries Inc.1		485
4,500	Sensient Technologies Corp.1		140
15,100	Valspar Corp.1		327
			2,249
COMMERCIAL BANKS—5.7%
28,236	Banco Latinoamericano de Exportaciones S.A. (PAN)1		518
18,100	Central Pacific Financial Corp.		200
32,400	Colonial BancGroup Inc.		216
27,600	Comerica Inc.1		793
24,000	Fifth Third Bancorp1		335
26,300	Huntington Bancshares Inc.1		185
25,400	KeyCorp1		268
29,100	Regions Financial Corp.1		276
9,100	UnionBanCal Corp.		489
			3,280
COMMERCIAL SERVICES & SUPPLIES—2.5%
18,000	IKON Office Solutions Inc.1		257
29,400	R.R. Donnelley & Sons Co.		785
43,300	Steelcase Inc. Cl. A1		431
			1,473
COMMUNICATIONS EQUIPMENT—0.4%
132,500	3Com Corporation*		249
COMPUTERS & PERIPHERALS—3.8%
16,100	Lexmark International Inc. Cl. A*1		565
53,000	Seagate Technology1		793
37,000	Sun Microsystems Inc.*1		393
15,700	Western Digital Corp.*1		452
			2,203
CONSUMER FINANCE—0.4%
8,551	Advanta Corp. Cl. B1		68
15,900	AmeriCredit Corp.*1		139
			207

14

Harbor Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
DIVERSIFIED FINANCIAL SERVICES—1.5%
31,200	CIT Group Inc.1	$	265
25,900	Financial Federal Corp.1		597
			862
DIVERSIFIED TELECOMMUNICATION SERVICES—1.0%
14,800	CenturyTel Inc.		550
ELECTRIC UTILITIES—3.5%
10,200	American Electric Power Company Inc.		403
17,600	Pepco Holdings Inc.		439
12,700	Pinnacle West Capital Corp.		426
9,200	Progress Energy Inc.1		389
17,100	Westar Energy Inc.1		378
			2,035
ELECTRICAL EQUIPMENT—1.3%
19,200	A. O. Smith Corp.1		762
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.8%
55,300	Kemet Corp.*1		75
27,700	Sanmina-SCI Corp.*1		49
11,300	Technitrol Inc.1		158
23,300	Vishay Intertechnology Inc.*		209
			491
ENERGY EQUIPMENT & SERVICES—3.1%
32,100	Patterson-UTI Energy Inc.1		912
14,800	Tidewater Inc.1		887
			1,799
FOOD & STAPLES RETAILING—1.7%
15,100	Safeway Inc.1		403
21,600	SUPERVALU Inc.1		553
			956
FOOD PRODUCTS—1.5%
28,600	Del Monte Foods Co.		243
4,600	Fresh Del Monte Produce Inc.*		97
3,600	Pilgrim’s Pride Corp.1		44
3,700	Sanderson Farms Inc.1		147
200	Seaboard Corp.1		360
			891
GAS UTILITIES—2.1%
17,400	AGL Resources Inc.		601
7,600	Nicor Inc.1		303
8,300	WGL Holdings Inc.1		287
			1,191
HEALTH CARE PROVIDERS & SERVICES—1.4%
6,900	CIGNA Corp.1		255
6,600	Coventry Health Care Inc.*		233
3,600	Kindred Healthcare Inc.*		97
3,300	Universal Health Services Inc. Cl. B1		200
			785
HOTELS, RESTAURANTS & LEISURE—1.6%
15,300	Brinker International Inc.1		281
11,900	Darden Restaurants Inc.		388
38,700	Ruby Tuesday Inc.1		266
			935
HOUSEHOLD DURABLES—5.2%
15,500	American Greetings Corp. Cl. A1		230
9,900	Black & Decker Corp.1		594
13,700	Blyth Inc.1		199

COMMON STOCKS—Continued
Shares		Value (000s)
HOUSEHOLD DURABLES—Continued
22,000	Ethan Allen Interiors Inc.1	$	552
44,000	Leggett & Platt Inc.1		858
7,500	Whirlpool Corp.1		568
			3,001
INSURANCE—12.5%
49,800	American Equity Investment Life Holding Company		435
16,600	American Financial Group, Inc.		481
34,100	Aspen Insurance Holdings Ltd. (BM)		866
12,500	Chubb Corp.		601
9,700	Cincinnati Financial Corp.		270
13,100	Everest Re Group Ltd.		1,072
26,900	Genworth Financial Inc. Cl. A1		430
17,300	Horace Mann Educators Corp.		240
23,100	IPC Holdings Ltd. (BM)		742
12,400	Lincoln National Corp.		591
13,300	MBIA Inc.*1		79
20,600	Nationwide Financial Services Inc. Cl. A1		955
5,600	Protective Life Corp.		201
5,800	StanCorp Financial Group Inc.		286
			7,249
IT SERVICES—1.8%
22,000	Computer Sciences Corp.*1		1,042
LEISURE EQUIPMENT & PRODUCTS—3.1%
6,200	Eastman Kodak Co.1		91
14,100	Hasbro Inc.1		546
18,600	Mattel Inc.1		373
17,700	Polaris Industries Inc.1		758
			1,768
MACHINERY—4.1%
12,500	Crane Co.1		444
6,000	Cummins Inc.		398
8,000	EnPro Industries Inc.*		288
12,000	Mueller Industries Inc.		308
11,000	Parker Hannifin Corp.1		678
5,800	Terex Corp.		275
			2,391
MEDIA—1.8%
22,700	Belo Corp. Cl. A		154
20,900	CBS Corp.		342
11,500	Gannett Inc.1		208
48,300	Journal Communications Inc. Cl. A1		229
12,000	Sinclair Broadcast Group Inc. Cl. A1		92
			1,025
METALS & MINING—0.6%
5,600	Nucor Corp.		320
MULTI-UTILITIES—4.7%
9,500	Alliant Energy Corp.1		306
18,000	CenterPoint Energy Inc.		284
10,500	DTE Energy Co.1		430
20,700	NiSource Inc.1		354
19,800	SCANA Corporation		717
31,200	Xcel Energy Inc.1		626
			2,717
MULTILINE RETAIL—0.8%
16,400	Family Dollar Stores Inc.		382
3,000	J.C. Penney Co. Inc.		92
			474

15

Harbor Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
OFFICE ELECTRONICS—1.1%
48,000	Xerox Corp.1	$	655
OIL, GAS & CONSUMABLE FUELS—4.5%
7,600	Holly Corporation		217
12,900	Overseas Shipholding Group Inc.1		1,016
14,900	Sunoco Inc.1		605
3,200	Swift Energy Co.*		163
17,900	Tesoro Petroleum Corp.1		276
9,000	Valero Energy Corp.		301
			2,578
PAPER & FOREST PRODUCTS—1.6%
33,500	International Paper Co.1		929
PHARMACEUTICALS—2.6%
15,400	Forest Laboratories Inc.*		547
64,500	King Pharmaceuticals Inc.*1		742
15,800	Mylan Inc.*1		205
			1,494
REAL ESTATE INVESTMENT TRUSTS (REITs)—4.4%
49,000	Anthracite Capital Inc.1		310
23,500	Hospitality Properties Trust1		501
59,400	HRPT Properties Trust1		416
7,200	Liberty Property Trust		262
3,600	Medical Properties Trust Inc.		40
13,700	National Health Investors Inc.		423
11,900	Newcastle Investment Corp.1		72
25,600	RAIT Investment Trust1		170
26,800	Sunstone Hotel Investors Inc.1		347
			2,541
ROAD & RAIL—0.2%
5,300	YRC Worldwide Inc.*1		90
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—2.2%
10,800	Cymer Inc.*1		286
13,517	MKS Instruments Inc.*1		278
12,400	Novellus Systems Inc.*1		253
64,300	RF Micro Devices Inc.*1		210
25,900	Skyworks Solutions Inc.1		245
			1,272
SPECIALTY RETAIL—2.4%
10,800	Barnes & Noble Inc.1		256
11,800	Sherwin-Williams Co.1		628
7,700	Sonic Automotive Inc. Cl. A1		78
27,100	Stage Stores Inc.1		402
			1,364

COMMON STOCKS—Continued
Shares		Value (000s)
TEXTILES, APPAREL & LUXURY GOODS—0.5%
12,900	Jones Apparel Group Inc.1	$	216
5,300	Liz Claiborne Inc.1		69
			285
THRIFTS & MORTGAGE FINANCE—0.1%
8,400	MGIC Investment Corp.1		54
TOBACCO—1.4%
15,800	Universal Corp.1		816
TRADING COMPANIES & DISTRIBUTORS—0.6%
3,803	United Rentals Inc.*		62
3,200	W.W. Grainger Inc.1		286
			348
TOTAL COMMON STOCKS     (Cost $75,315)			57,147

SHORT-TERM INVESTMENTS—30.8%
Principal Amount (000s)
	REPURCHASE AGREEMENTS
$	1,060	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal National Mortgage Association Notes (market value $1,085)		1,060
Shares
	SECURITIES LENDING COLLATERAL
	16,448,955	State Street Navigator Securities Lending Prime Portfolio (1-day yield of 2.680%)		16,449
	TOTAL SHORT-TERM INVESTMENTS     (Cost $17,509)			17,509
	TOTAL INVESTMENTS—129.7%     (Cost $92,824)			74,656
	CASH AND OTHER ASSETS, LESS LIABILITIES—(29.7)%			(16,891	)
	TOTAL NET ASSETS—100.0%		$	57,765

* Non-income producing security.

1 A portion or all of this security was out on loan at July 31, 2008.

(BM) Bermuda.

(PAN) Panama.

(SW) Sweden.

The accompanying notes are an integral part of the portfolio of investments.

16

Harbor SMID Value Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 6.3%)

COMMON STOCKS—93.7%
Shares		Value (000s)
AUTO COMPONENTS—3.9%
4,150	American Axle & Manufacturing Holdings Inc.	$	24
5,275	Lear Corp.*		76
			100
BUILDING PRODUCTS—2.3%
5,800	Griffon Corp.*		58
COMMERCIAL BANKS—20.5%
1,650	City National Corp.		81
2,150	Comerica Inc.		62
5,275	Marshall & Ilsley Corp.		80
17,275	National City Corp.		82
13,750	Popular Inc.		94
1,675	UnionBanCal Corp.		90
18,600	W Holding Co. Inc.		15
1,000	Whitney Holding Corp.		21
			525
COMMERCIAL SERVICES & SUPPLIES—4.5%
275	Avery Dennison Corp.		12
4,225	Bowne & Co. Inc.		55
3,375	Deluxe Corp.		48
			115
COMPUTERS & PERIPHERALS—6.1%
42,825	Adaptec Inc.*		156
FOOD PRODUCTS—5.1%
7,750	Del Monte Foods Co.		66
2,975	Smithfield Foods Inc.*		64
			130

COMMON STOCKS—Continued
Shares		Value (000s)
HEALTH CARE EQUIPMENT & SUPPLIES—2.5%
1,875	Cooper Companies Inc.	$	63
HOTELS, RESTAURANTS & LEISURE—2.1%
2,175	Royal Caribbean Cruises Ltd.		55
HOUSEHOLD DURABLES—10.2%
1,000	Black & Decker Corp.		60
1,875	CSS Industries Inc.		53
3,250	Jarden Corp.*		78
1,875	M/I Homes Inc.*		36
10,250	Standard Pacific Corp.*		36
			263
INSURANCE—14.3%
31,425	AMBAC Financial Group Inc.		79
4,850	Assured Guaranty Ltd.		56
1,875	First American Corp.		47
13,275	MBIA Inc.*		79
5,850	Old Republic International Corp.		61
2,525	Stewart Information Services Corp.		44
			366
LEISURE EQUIPMENT & PRODUCTS—6.1%
3,175	Jakks Pacific Inc.*		70
13,175	MarineMax Inc.*		87
			157
MACHINERY—3.1%
4,150	Blount International Inc.*		47
2,350	Briggs & Stratton Corp.		32
			79
MARINE—2.9%
1,725	Alexander & Baldwin Inc.		75
PAPER & FOREST PRODUCTS—1.5%
4,575	Louisiana-Pacific Corp.*		39
ROAD & RAIL—2.4%
1,150	Arkansas Best Corp.		43
5,650	Dollar Thrifty Automotive Group Inc.*		18
			61
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.3%
6,525	Axcelis Technologies Inc.*		33
TEXTILES, APPAREL & LUXURY GOODS—2.3%
3,900	K-Swiss Inc. Cl. A		60
THRIFTS & MORTGAGE FINANCE—2.6%
8,225	Federal Home Loan Mortgage Corp.		67
TOTAL COMMON STOCKS     (Cost $4,034)			2,402

17

Harbor SMID Value Fund

PORTFOLIO OF INVESTMENTS—Continued

SHORT-TERM INVESTMENTS—5.2%
	(Cost $132)
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	132	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank (market value $135)	$	132
	TOTAL INVESTMENTS—98.9%     (Cost $4,166)			2,534
	CASH AND OTHER ASSETS, LESS LIABILITIES—1.1%			28
	TOTAL NET ASSETS—100.0%		$	2,562

* Non-income producing security.

The accompanying notes are an integral part of the portfolio of investments.

18

Harbor Small Cap Value Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 5.0%)

COMMON STOCKS—95.0%
Shares		Value (000s)
AEROSPACE & DEFENSE—5.9%
818,400	AAR Corp.*1	$	14,068
1,151,000	Hexcel Corp.*1		21,846
451,798	Moog Inc. Cl. A*1		20,082
320,400	Teledyne Technologies Inc.*		20,153
			76,149
CAPITAL MARKETS—7.5%
295,466	Calamos Asset Management Inc. Cl. A		6,045
917,673	Eaton Vance Corp.1		34,082
1,180,400	Jefferies Group Inc.1		22,416
1,199,068	Raymond James Financial Inc.1		34,653
			97,196
CHEMICALS—1.9%
593,500	Scotts Miracle-Gro Co. Cl. A1		11,561
634,800	Valspar Corp.1		13,756
			25,317
COMMERCIAL BANKS—2.0%
953,600	East West Bancorp Inc.		11,357
708,100	Pacific Capital Bancorp1		9,255
738,000	Sterling Financial Corp.1		5,520
			26,132

COMMON STOCKS—Continued
Shares		Value (000s)
COMMERCIAL SERVICES & SUPPLIES—2.3%
1,411,900	Allied Waste Industries Inc.*	$	17,084
401,838	School Specialty Inc.*1		13,385
			30,469
COMMUNICATIONS EQUIPMENT—1.3%
1,771,319	Arris Group Inc.*1		16,952
CONSTRUCTION & ENGINEERING—3.0%
440,000	Granite Construction Inc.1		13,917
604,900	URS Corp.*		25,357
			39,274
CONSTRUCTION MATERIALS—1.0%
972,661	Headwaters Inc.*1		12,752
CONSUMER FINANCE—2.1%
441,662	Cash America International Inc.		18,620
75,300	Student Loan Corp.1		8,202
			26,822
ELECTRONIC EQUIPMENT & INSTRUMENTS—8.9%
892,002	Checkpoint Systems Inc.*		18,794
1,311,536	FLIR Systems Inc.*1		53,432
392,611	Itron Inc.*1		36,250
3,835,500	Sanmina-SCI Corp.*		6,789
			115,265
GAS UTILITIES—1.8%
526,400	Oneok Inc.1		23,941
HEALTH CARE PROVIDERS & SERVICES—6.5%
409,500	Amedisys Inc.*1		26,257
794,700	Amerigroup Corp.*1		20,185
872,862	Healthways Inc.*1		22,179
871,500	Sunrise Senior Living Inc.*1		15,626
			84,247
HOTELS, RESTAURANTS & LEISURE—3.8%
748,998	Brinker International Inc.		13,774
731,000	Life Time Fitness Inc.*		21,776
910,291	Sonic Corp.*1		13,736
			49,286
HOUSEHOLD DURABLES—3.2%
996,096	Hovnanian Enterprises Inc. Cl. A*1		7,003
450,400	Meritage Homes Corp.*1		8,130
476,900	Snap-on Inc.		26,845
			41,978
INSURANCE—8.2%
563,197	Delphi Financial Group Inc.		14,052
800,099	Philadelphia Consolidated Holding Corp.*		46,766
441,700	Protective Life Corp.		15,884
678,200	State Auto Financial Corp.1		19,607
365,300	United Fire & Casualty Co.1		9,925
			106,234
IT SERVICES—4.1%
772,600	Global Payments Inc.		34,218
841,800	SRA International Inc.*1		18,478
			52,696
LIFE SCIENCES TOOLS & SERVICES—6.2%
434,500	Covance Inc.*		39,887
1,082,986	Pharmaceutical Product Development Inc.		41,305
			81,192

19

Harbor Small Cap Value Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
MACHINERY—9.5%
838,700	Bucyrus International Inc. Cl. A1	$	58,717
502,200	Harsco Corp.		27,169
614,800	Timken Co.		20,301
512,400	Toro Company		16,679
			122,866
OIL, GAS & CONSUMABLE FUELS—8.0%
954,000	Cabot Oil & Gas Corp.		41,986
217,900	St. Mary Land & Exploration Co.		9,274
519,200	Swift Energy Co.*1		26,386
608,900	W&T Offshore Inc.1		26,950
			104,596
PHARMACEUTICALS—1.5%
290,850	Barr Pharmaceuticals Inc.*1		19,190
SPECIALTY RETAIL—1.8%
776,200	Aaron Rents Inc. Cl. B1		21,322
173,700	Carmax Inc.*		2,339
			23,661
TEXTILES, APPAREL & LUXURY GOODS—1.7%
617,900	Phillips-Van Heusen Corp.1		21,874
THRIFTS & MORTGAGE FINANCE—1.6%
939,150	Astoria Financial Corp.1		21,009
TRADING COMPANIES & DISTRIBUTORS—1.2%
301,584	Watsco Inc.1		15,041
TOTAL COMMON STOCKS     (Cost $1,064,283)			1,234,139

SHORT-TERM INVESTMENTS—29.3%
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	68,103	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank Notes (market value $46,900) and Federal National Mortgage Association (market value $22,570)	$	68,103
Shares
	SECURITIES LENDING COLLATERAL
	309,376,864	State Street Navigator Securities Lending Prime Portfolio (1-day yield of 2.680%)		309,377
	TOTAL SHORT-TERM INVESTMENTS     (Cost $377,480)			377,480
	TOTAL INVESTMENTS—124.3%     (Cost $1,441,763)			1,611,619
	CASH AND OTHER ASSETS, LESS LIABILITIES—(24.3)%			(312,952	)
	TOTAL NET ASSETS—100.0%		$	1,298,667

* Non-income producing security.

1 A portion or all of this security was out on loan at July 31, 2008.

The accompanying notes are an integral part of the portfolio of investments.

20

Harbor International Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.0%)

COMMON STOCKS—87.9%
Shares			Value (000s)
AIRLINES—2.7%
28,531,000		All Nippon Airways Co. Ltd. (JP)	$	104,412
116,518,000		Cathay Pacific Airways Ltd. (HK)		222,945
10,296,737		Deutsche Lufthansa AG—Registered (GER)		236,230
36,018,000		Japan Airlines Corp. (JP)*		73,476
12,859,540		Singapore Airlines Ltd. (SGP)		141,381
				778,444
AUTO COMPONENTS—1.7%
2,291,406		Continental AG (GER)		257,544
3,284,534		Michelin (CGDE) Cl. B (FR)		216,547
				474,091
AUTOMOBILES—0.2%
950,000		Peugeot SA (FR)		46,385
BEVERAGES—1.8%
22,724,045		Diageo plc (UK)		395,863
—	a	Dr Pepper Snapple Group Inc. (US)*		—	a
1,807,000		Pernod Ricard SA (FR)		157,254
				553,117
BUILDING PRODUCTS—2.6%
17,474,000		Asahi Glass Co. Ltd. (JP)		193,069
13,233,608		Assa Abloy Ab Series B (SW)		180,524
6,181,319		Compagnie de Saint-Gobain (FR)		384,201
				757,794

COMMON STOCKS—Continued
Shares		Value (000s)
CAPITAL MARKETS—1.8%
25,216,400	Nomura Holdings Inc. (JP)	$	363,905
7,270,751	UBS AG (SWS)		139,556
			503,461
CHEMICALS—2.5%
4,306,472	Linde AG (GER)		595,475
360,000	Syngenta AG—Registered (SWS)		104,791
			700,266
COMMERCIAL BANKS—13.3%
24,615,118	Banco Santander Central Hispano SA—Registered (SP)		479,181
4,019,000	BNP Paribas (FR)		396,202
13,856,268	Commerzbank AG (GER)		445,557
24,017,000	DBS Group Holdings Ltd. (SGP)		334,061
5,120,834	Erste Bank der oesterreichischen Sparkassen AG (AUT)		326,521
3,000,000	ICICI Bank Ltd. ADR (IND)1		88,830
41,500,000	Lloyds TSB Group plc (UK)		241,992
87,085,000	Malayan Banking Berhad (MAL)		211,558
28,950,000	Mitsubishi UFJ Financial Group Inc. (JP)		255,636
12,009,933	Standard Chartered plc (UK)		365,655
44,779,000	Sumitomo Trust and Banking Co. Ltd. (JP)		308,337
19,178,127	United Overseas Bank Ltd. (SGP)		271,177
			3,724,707
COMMUNICATIONS EQUIPMENT—0.1%
1,900,000	Ericsson (LM) Tel Ab Series B (SW)		19,939
CONSTRUCTION MATERIALS—1.1%
4,275,034	Holcim Ltd.—Registered (SWS)		303,574
CONSUMER FINANCE—0.9%
1,786,250	ORIX Corp. (JP)		270,437
DIVERSIFIED FINANCIAL SERVICES—2.1%
7,366,158	ING Groep NV (NET)		240,206
16,152,505	Investor Ab Cl. B (SW)		351,435
			591,641
DIVERSIFIED TELECOMMUNICATION SERVICES—2.7%
11,426,000	France Telecom SA (FR)		361,280
16,244,500	Telefonica SA (SP)		421,506
			782,786
ELECTRICAL EQUIPMENT—4.1%
31,765,918	ABB Ltd. (SWS)		832,793
2,994,117	Schneider Electric SA (FR)		331,536
			1,164,329
FOOD & STAPLES RETAILING—1.4%
32,605,213	Cadbury plc (UK)		385,118
FOOD PRODUCTS—1.7%
11,361,100	Nestle SA—Registered (SWS)		498,354
HOTELS, RESTAURANTS & LEISURE—2.4%
5,200,690	Accor SA (FR)		346,837
132,000,000	Genting Berhad (MAL)		237,423
111,000,000	Resorts World Berhad (MAL)		94,572
			678,832
HOUSEHOLD DURABLES—0.8%
6,194,500	Sony Corp. (JP)		234,246
INDUSTRIAL CONGLOMERATES—1.8%
40,791,000	Keppel Corp. (SGP)		314,953
83,789,047	Sime Darby Bhd (MAL)		202,282
			517,235

21

Harbor International Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
INSURANCE—3.1%
1,884,548	Allianz AG—Registered (GER)	$	319,557
13,373,572	AXA SA (FR)		393,069
44,529,000	China Life Insurance Co. Ltd. (CHN)		167,697
			880,323
MACHINERY—3.8%
6,540,000	Alfa Laval Ab (SW)		101,700
24,205,831	Atlas Copco Ab (SW)		374,749
4,622,400	Fanuc Ltd. (JP)		367,073
13,459,000	SKF Ab (SW)		227,792
			1,071,314
MARINE—1.3%
32,600	A.P. Moller Maersk A/S Series B (DEN)		379,024
MEDIA—0.7%
7,714,079	JC Decaux SA (FR)		195,298
METALS & MINING—6.2%
3,181,032	Anglo American plc (UK)		181,848
8,825,108	Anglo American plc ADR (UK)1		252,045
2,972,509	AngloGold Ashanti Ltd. ADR (S. AFR)1		98,004
17,271,505	BHP Billiton (AUS)		571,603
29,067,000	Norsk Hydro ASA (NOR)		363,384
2,764,343	Rio Tinto plc—Registered (UK)		289,276
			1,756,160
OFFICE ELECTRONICS—1.1%
7,164,100	Canon Inc. (JP)		327,437
OIL, GAS & CONSUMABLE FUELS—8.7%
18,735,829	BG Group plc (UK)		423,432
37,266,370	BP plc (UK)		382,480
1,473,000	Cameco Corp. ADR (CAN)1		52,925
215,286,000	China Petroleum & Chemical Corp (CHN)		224,823
10,324,607	Eni SpA (IT)		348,401
1,274,807	Royal Dutch Shell plc Cl. A (UK)		45,263
3,620,831	Royal Dutch Shell plc Cl. A (NET)		128,403
2,377,600	Royal Dutch Shell plc Cl. A ADR (NET)1		168,310
10,008,629	Statoil Hydro ASA (NOR)		324,215
5,431,604	Total SA (FR)		415,893
			2,514,145
PAPER & FOREST PRODUCTS—1.2%
5,010,250	Aracruz Celulose SA ADR (BR)1		348,212
PERSONAL PRODUCTS—2.1%
2,491,769	L’Oreal SA (FR)		260,915
15,787,000	Shiseido Co. Ltd. (JP)		351,263
			612,178
PHARMACEUTICALS—4.3%
3,938,503	Novartis AG—Registered (SWS)		233,812
8,968,834	Novo Nordisk A/S Series B (DEN)		568,675
2,255,510	Roche Holding Ltd. (SWS)		416,732
			1,219,219
REAL ESTATE INVESTMENT TRUSTS (REITS)—0.6%
798,000	Unibail-Rodamco Company (FR)		178,524
REAL ESTATE MANAGEMENT & DEVELOPMENT—1.4%
28,271,000	Cheung Kong Holdings Ltd. (HK)		395,523
11,100,000	Genting International plc (SGP)*		4,558
			400,081

COMMON STOCKS—Continued
Shares		Value (000s)
TEXTILES, APPAREL & LUXURY GOODS—1.3%
6,421,872	Compagnie Financiere Richemont AG Cl. A (SWS)	$	383,715
10,835,055	Nova America SA (BR)*		—	b
			383,715
THRIFTS & MORTGAGE FINANCE—0.6%
3,224,827	Housing Development Finance Corp. (IND)		170,177
TOBACCO—4.1%
8,769,821	British American Tobacco plc (UK)		316,480
6,785,836	Imperial Tobacco Group plc (UK)		253,431
127,400	Japan Tobacco Inc. (JP)		593,831
			1,163,742
TRANSPORTATION INFRASTRUCTURE—0.4%
1,641,975	Fraport AG Frankfurt Airport Services Worldwide (GER)		100,293
WIRELESS TELECOMMUNICATION SERVICES—1.3%
27,147,500	China Mobile (Hong Kong) Ltd. (HK)		362,695
45,069	China Mobile Ltd. ADR (HK)1		3,013
			365,708
TOTAL COMMON STOCKS     (Cost $19,535,148)			25,050,306
PREFERRED STOCKS—9.1%
COMMERCIAL BANKS—3.6%
28,054,902	Banco Bradesco S.A. (BR)		593,769
19,703,750	Banco Itau Holding Financeira SA ADR (BR)1		419,690
			1,013,459
METALS & MINING—1.7%
18,066,000	Companhia Vale do Rio Doce Cl. A (BR)		471,172
OIL, GAS & CONSUMABLE FUELS—3.4%
43,397,200	Petroleo Brasileiro SA—PETROBRAS (BR)		994,674
PAPER & FOREST PRODUCTS—0.4%
7,636,700	Companhia Suzano de Papel e Celulose (BR)		113,846
TEXTILES, APPAREL & LUXURY GOODS—0.0%
1,056,355	Nova America SA (BR)*		—	a
TOTAL PREFERRED STOCKS     (Cost $725,951)			2,593,151

22

Harbor International Fund

PORTFOLIO OF INVESTMENTS—Continued

SHORT-TERM INVESTMENTS—3.3%
Principal Amount (000s)			Value (000s)
	COMMERCIAL PAPER
		American Express CRT
$	36,210	1.950%—08/01/2008	$	36,210
	84,678	2.040%—08/04/2008-08/05/2008		84,678
	36,940	2.100%—08/12/2008		36,940
				157,828
		Citigroup FDG Inc.
	32,067	2.070%—08/07/2008		32,067
	32,487	2.080%—08/08/2008		32,487
	45,835	2.120%—08/11/2008		45,835
	115,089	2.130%—08/01/2008-08/06/2008		115,089
				225,478
		General Electric Co.
	48,246	2.100%—08/01/2008		48,246
	41,575	2.120%—08/05/2008		41,575
	89,782	2.150%—08/07/2008-08/13/2008		89,782
	94,127	2.160%—08/14/2008-08/15/2008		94,127
				273,730
		Prudential Funding LLC
	36,211	1.980%—08/04/2008		36,211
	32,067	2.030%—08/06/2008		32,067
	36,939	2.080%—08/08/2008		36,939
	84,125	2.100%—08/11/2008-08/13/2008		84,125
	93,618	2.120%—08/12/2008-08/14/2008		93,618
				282,960
	TOTAL SHORT-TERM INVESTMENTS     (Cost $939,996)			939,996
	TOTAL INVESTMENTS—100.3%     (Cost $21,201,095)			28,583,453
	CASH AND OTHER ASSETS, LESS LIABILITIES—(0.3)%			(87,018	)
	TOTAL NET ASSETS—100.0%		$	28,496,435

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

a Rounds to less than $1,000.

b Fair valued by Harbor Fund’s Valuation Committee.

The accompanying notes are an integral part of the portfolio of investments.

23

Harbor International Growth Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 9.8%)

COMMON STOCKS—90.2%
Shares		Value (000s)
AUTO COMPONENTS—3.0%
315,160	Continental AG (GER)	$	35,423
BEVERAGES—2.1%
534,233	Heineken NV (NET)*		24,823
BIOTECHNOLOGY—3.1%
235,801	Actelion Ltd.—Registered (SWS)*		12,836
719,063	CSL Ltd. (AUS)		23,250
			36,086
BUILDING PRODUCTS—1.0%
273,377	Daikin Industries Ltd. (JP)		11,674
CAPITAL MARKETS—3.5%
1,278,000	Daiwa Securities Group Inc. (JP)*		11,078
86,910	Deutsche Bank AG (GER)		8,100
352,184	Julius Baer Holding Ltd. (SWS)		22,329
			41,507
CHEMICALS—8.7%
182,676	Johnson Matthey plc (UK)		6,015
209,007	Linde AG (GER)		28,900
241,198	Lonza Group Ltd.—Registered (SWS)		34,960
156,175	Potash Corporation of Saskatchewan Inc. (CAN)		31,902
			101,777
COMMERCIAL BANKS—7.6%
362,100	Commerzbank AG (GER)		11,644
658,475	Credit Suisse Group (SWS)		32,884
373,676	ICICI Bank Ltd. ADR (IND)1		11,065

COMMON STOCKS—Continued
Shares		Value (000s)
COMMERCIAL BANKS—Continued
933,234	Man Group plc (UK)	$	11,273
2,189	Mizuho Financial Group Inc. (JP)		10,481
93,413	Unibanco Holdings SA GDR (BR)2		12,293
			89,640
COMMUNICATIONS EQUIPMENT—3.4%
326,946	Research In Motion Ltd. (CAN)*		40,156
COMPUTERS & PERIPHERALS—0.6%
914,000	Fujitsu Ltd. (JP)		6,610
CONSTRUCTION MATERIALS—1.0%
530,316	Cemex SAB de CV ADR (MEX)1		11,275
DIVERSIFIED FINANCIAL SERVICES—0.9%
804,198	Bovespa Holding SA (BR)*		10,161
ELECTRICAL EQUIPMENT—9.6%
988,002	ABB Ltd. (SWS)		25,902
257,467	Alstom SA (FR)		28,820
209,080	Gamesa Corp. Technologica SA (SP)		9,941
367,622	Vestas Wind Systems A/S (DEN)*		47,944
			112,607
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.6%
1,508,000	Hon Hai Precision Industry Co. Ltd. (TWN)		7,288
ENERGY EQUIPMENT & SERVICES—0.9%
285,348	Cie Generale de Geophysique-Veritas (FR)*		11,154
FOOD & STAPLES RETAILING—1.9%
3,139,076	Tesco plc (UK)*		22,297
FOOD PRODUCTS—2.5%
676,526	Nestle SA—Registered (SWS)		29,676
HOTELS, RESTAURANTS & LEISURE—3.4%
260,962	Accor SA (FR)		17,404
357,332	Las Vegas Sands Corp. (US)*		16,266
3,042,000	Shangri-La Asia Ltd. (HK)		6,495
			40,165
HOUSEHOLD DURABLES—1.1%
729,963	Gafisa SA (BR)		12,583
HOUSEHOLD PRODUCTS—1.5%
323,410	Reckitt Benckiser plc (UK)*		17,632
INSURANCE—1.7%
698,686	AXA SA (FR)		20,535
MACHINERY—1.5%
367,171	GEA Group AG (GER)		12,081
225,531	Hitachi Construction Machinery Co. Ltd. (JP)		5,960
			18,041
MEDIA—1.9%
1,282,249	British Sky Broadcasting Group plc (UK)		11,493
421,524	JC Decaux SA (FR)		10,672
			22,165
METALS & MINING—2.1%
382,747	BHP Billiton (AUS)		12,667
111,354	Rio Tinto plc—Registered (UK)		11,653
			24,320
MULTI-UTILITIES—3.0%
671,282	Veolia Environnement SA (FR)		35,624

24

Harbor International Growth Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
MULTILINE RETAIL—0.9%
100,711	PPR SA (FR)	$	10,926
OIL, GAS & CONSUMABLE FUELS—5.4%
1,161,896	BG Group plc (UK)		26,259
7,033,300	CNOOC Ltd. (HK)*		10,377
476,756	Petroleo Brasileiro SA—PETROBRAS ADR (BR)1		26,655
			63,291
PHARMACEUTICALS—2.6%
672,785	Teva Pharmaceutical Industries Ltd. ADR (IL)1		30,168
REAL ESTATE MANAGEMENT & DEVELOPMENT—0.5%
1,369,000	CapitaLand Ltd. (SGP)		5,650
ROAD & RAIL—0.6%
526,781	All America Latina Logistica SA (BR)		7,022
SOFTWARE—3.6%
88,400	Nintendo Co. Ltd. (JP)		42,890
SPECIALTY RETAIL—0.9%
1,032,500	Esprit Holdings Ltd. (HK)		10,986
TRADING COMPANIES & DISTRIBUTORS—1.8%
2,845,000	Marubeni Corp. (JP)		20,726
WIRELESS TELECOMMUNICATION SERVICES—7.3%
461,661	America Movil SAB de CV Series L ADR (MEX)1		23,309
1,292,500	China Mobile (Hong Kong) Ltd. (HK)		17,268
1,119,112	MTN Group Ltd. (S. AFR)		19,156
776,517	Rogers Communications Inc. (CAN)		26,231
			85,964
TOTAL COMMON STOCKS     (Cost $1,064,903)			1,060,842

SHORT-TERM INVESTMENTS—12.6%
	(Cost $147,817)
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	147,817	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank Notes (market value $150,775)	$	147,817
	TOTAL INVESTMENTS—102.8%     (Cost $1,212,720)			1,208,659
	CASH AND OTHER ASSETS, LESS LIABILITIES—(2.8)%			(32,505	)
	TOTAL NET ASSETS—100.0%		$	1,176,154

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

2 GDR after the name of a holding stands for Global Depositary Receipts representing ownership of foreign securities. GDRs are issued by either U.S. or non-U.S. banking organizations.

The accompanying notes are an integral part of the portfolio of investments.

25

Harbor Global Value Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Equity Holdings (% of net assets)

(Excludes net cash and short-term investments of 3.3%)

COMMON STOCKS—96.7%
Shares		Value (000s)
AEROSPACE & DEFENSE—4.6%
55,025	Finmeccanica SpA (IT)	$	1,622
23,925	Thales Group (FR)		1,353
			2,975
AUTO COMPONENTS—3.3%
10,925	Magna International Inc. Cl. A (CAN)		646
188,300	Sumitomo Rubber Industries Inc. (JP)		1,501
			2,147
BIOTECHNOLOGY—2.1%
21,425	Amgen Inc. (US)*		1,342
CAPITAL MARKETS—1.4%
26,025	Lehman Brothers Holdings Inc. (US)		451
24,840	UBS AG (SWS)		477
			928
CHEMICALS—2.9%
187,975	Clariant Ltd.—Registered (SWS)		1,860
COMMERCIAL BANKS—21.7%
1	Credit Agricola (FR)*		—	a
106,521	Credit Agricole SA (FR)		2,268
59,400	DnB NOR ASA (NOR)		759
140,896	HSBC Holdings plc (UK)		2,330
21,591	Kookmin Bank (S. KOR)		1,224
217,900	Mitsubishi UFJ Financial Group Inc. (JP)		1,924
86,000	Popular Inc. (US)		591
548,027	Royal Bank of Scotland Group plc (UK)		2,274
247	Sumitomo Mitsui Financial Group Inc. (JP)		1,916
57,975	Wachovia Corp. (US)		1,001
			14,287
COMMERCIAL SERVICES & SUPPLIES—1.3%
629,350	Rentokil Initial plc (UK)*		832

COMMON STOCKS—Continued
Shares		Value (000s)
COMMUNICATIONS EQUIPMENT—2.9%
304,575	Alcatel-Lucent (FR)	$	1,822
16,338	Alcatel-Lucent ADR (FR)1		98
			1,920
CONSUMER FINANCE—3.0%
47,075	Capital One Financial Corp. (US)		1,971
CONTAINERS & PACKAGING—2.4%
311,300	Amcor Ltd. (AUS)		1,553
DIVERSIFIED FINANCIAL SERVICES—7.6%
28,900	Bank of America Corp. (US)		951
102,640	Citigroup Inc. (US)		1,918
66,080	ING Groep NV (NET)		2,155
			5,024
ELECTRIC UTILITIES—1.4%
22,100	Korea Electric Power Corp. (S. KOR)		705
7,025	Public Power Corporation SA (GRC)		217
			922
ELECTRICAL EQUIPMENT—2.4%
3,696,000	Johnson Electric Holdings Ltd. (HK)		1,564
FOOD PRODUCTS—2.9%
12,950	Kerry Group plc (IE)*		359
55,000	Unilever NV (NET)		1,517
			1,876
HEALTH CARE PROVIDERS & SERVICES—0.8%
12,000	AmerisourceBergen Corp. (US)		502
HOTELS, RESTAURANTS & LEISURE—1.4%
122,150	Compass Group plc (UK)		881
HOUSEHOLD DURABLES—6.8%
68,575	Koninklijke Philips Electronics NV (NET)		2,286
28,275	Whirlpool Corp. (US)		2,140
			4,426
INSURANCE—5.4%
80,421	Aegon NV (NET)		940
99,625	Aviva plc (UK)		989
31,725	RenaissanceRe Holdings Ltd. (BM)		1,614
			3,543
MEDIA—4.0%
75,925	British Sky Broadcasting Group plc (UK)		681
45,900	Vivendi SA (FR)		1,919
			2,600
MULTILINE RETAIL—0.9%
19,725	J.C. Penney Co. Inc. (US)		608
OFFICE ELECTRONICS—2.5%
100,000	Ricoh Co. Ltd. (JP)		1,624
PHARMACEUTICALS—6.9%
26,075	Bristol-Myers Squibb Co. (US)		551
97,975	GlaxoSmithKline plc (UK)		2,284
9,600	Johnson & Johnson (US)		657
52,350	Pfizer Inc. (US)		977
			4,469

26

Harbor Global Value Fund

PORTFOLIO OF INVESTMENTS—Continued

COMMON STOCKS—Continued
Shares		Value (000s)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—1.2%
13,600	Tokyo Electron Ltd. (JP)	$	762
SOFTWARE—1.9%
48,375	Microsoft Corp. (US)		1,244
SPECIALTY RETAIL—2.4%
57,425	Home Depot Inc. (US)		1,368
5,250	TJX Cos. Inc. (US)		177
			1,545
THRIFTS & MORTGAGE FINANCE—2.6%
111,295	Federal Home Loan Mortgage Corp. (US)		909
67,460	Federal National Mortgage Association (US)		777
			1,686
TOTAL COMMON STOCKS     (Cost $91,380)			63,091

SHORT-TERM INVESTMENTS—3.1%
	(Cost $2,010)
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	2,010	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Mortgage Corp. (market value $2,055)	$	2,010
	TOTAL INVESTMENTS—99.8%     (Cost $93,390)			65,101
	CASH AND OTHER ASSETS, LESS LIABILITIES—0.2%			118
	TOTAL NET ASSETS—100.0%		$	65,219

* Non-income producing security.

1 ADR after the name of a foreign holding stands for American Depositary Receipts representing ownership of foreign securities. ADRs are issued by U.S. banking institutions.

a Rounds to less than $1,000.

The accompanying notes are an integral part of the portfolio of investments.

27

Harbor Funds—Equity Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—July 31, 2008 (Unaudited)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES

Security Valuation

Equity securities (except securities listed on the National Association of Securities Dealers Automated Quotation (“NASDAQ”) system and United Kingdom securities) are valued at the last sale price on a national exchange or system on which they are principally traded on the valuation date. Securities listed on the NASDAQ system or a United Kingdom exchange are valued at the official closing price of those securities. In the case of securities for which there were no sales on the valuation day, securities traded principally: (i) on a U.S. exchange, including NASDAQ, will be valued at the mean between the closing bid and asked price; (ii) on a foreign exchange, including United Kingdom securities, will be valued at the official bid price determined as of the close of the primary exchange.

When reliable market quotations are not readily available or when market quotations do not accurately reflect fair value, securities are priced at their fair value, calculated according to procedures adopted by the Funds’ Board of Trustees, which may include utilizing an independent pricing service. A Fund may use fair value pricing if the value of some or all of the Fund’s securities have been materially affected by events occurring before the Fund’s pricing time but after the close of the primary markets or exchanges on which the security is traded. This most commonly occurs with foreign securities, but may occur with other securities as well. When fair value pricing is employed, the prices of securities used by a Fund to calculate its net asset value may differ from market quotations or official closing prices for the same securities which means the Fund may value those securities higher or lower than another fund that uses market quotations or official closing prices.

For the Funds which may invest primarily in international equity securities, the fair value pricing procedures recognize that volatility in the U.S. equity markets may cause prices of foreign securities determined at the close of the foreign market or exchange on which the securities are traded to no longer be reliable when the Funds’ net asset values are determined. As a result, many of the international and global Funds’ foreign equity securities may be valued at their fair value in accordance with the fair value pricing procedures on any given day in an accounting period.

Futures Contracts

To seek to increase total return or hedge against changes in interest rates, securities prices or currency exchange rates, each Fund may purchase and sell various kinds of futures contracts, and purchase and write call and put options on these futures contracts. Harbor Large Cap Value Fund is not authorized to enter into currency futures contracts and options on such contracts. Harbor International Fund and Harbor International Growth Fund are not authorized to enter into futures contracts on currencies or engage in options transactions with respect to futures contracts for speculative purposes. Futures contracts tend to increase or decrease the Fund’s exposure to the underlying instrument or hedge other Fund investments. Losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the contracts’ terms. The maximum potential loss on a long futures contract is the U.S. dollar value of the notional amount at the time the contract is opened. The potential loss on a short futures contract is unlimited. Open futures contracts are valued based on the official daily closing price of futures contracts set by the exchange for the purpose of settling margin accounts, which is referred to as the settlement price.

There were no futures contracts held as of July 31, 2008.

A futures contract is an agreement between two parties to buy and sell a security at a set price on a future date. Upon entering into such a contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities or other liquid securities equal to the minimum “initial margin” requirements of the exchange. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Fund as unrealized gains or losses. When the contract is closed or expired, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Options

Consistent with its investment policies, each Fund may use options contracts to manage its exposure to the stock and bond markets and to fluctuations in interest rates and currency values. Harbor Large Cap Value Fund is not authorized to engage in options transactions on currencies. Harbor International Fund and Harbor International Growth Fund are not authorized to engage in options transactions on currencies for speculative purposes. Call options tend to decrease a Fund’s exposure to the underlying instrument. Put options tend to increase a Fund’s exposure to the underlying instrument.

28

Harbor Funds—Equity Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

When a Fund purchases an option, the premium paid by the Fund is included in the Fund’s Statement of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the option’s current market value. Purchased options on equity securities are valued at the last sale price on the market on which they are principally traded. Purchased options on futures contracts are valued based on the settlement price for the underlying futures contract. If the purchased option expires, the Fund realizes a loss in the amount of the premium. If the Fund enters into a closing sale transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the option. If the Fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid. The risk associated with purchasing options is limited to the premium originally paid.

When a Fund writes an option, the premium received by the Fund is presented in the Fund’s Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. Written options on equity securities are valued at the last sale price or, in the absence of a sale, the last offering price on the market on which they are principally traded. Written options on futures contracts are valued based on the settlement price for the underlying futures contract. If an option expires on its stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written call option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which the Fund purchases upon exercise of the option.

The risk in writing a call option is that the Fund relinquishes the opportunity to profit if the market price of the underlying security increases and the option is exercised. In writing a put option, the Fund assumes the risk of incurring a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is a risk the Fund may not be able to enter into a closing transaction because of an illiquid secondary market or if the counterparties do not perform under the contracts’ terms.

U.S. Government Securities

Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U. S. Government. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government.

TBA/When-Issued Purchase Commitments

Each Fund may enter into TBA (to be announced) and when-issued purchase commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price for a TBA has been established, the principal value has not been finalized. However, the amount of the commitment will not fluctuate more than 2.0% from the principal amount. The price of a when-issued security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated.

A Fund holds, and maintains until the settlement date, cash or liquid securities in an amount sufficient to meet the purchase price. TBA and when-issued purchase commitments may be considered securities in themselves and involve a risk of loss if the value of the security to be purchased declines prior to the settlement date, which risk is in addition to the risk of decline in the value of the Fund’s other assets. Risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. Unsettled TBA and when-issued purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under “Security Valuation” above.

29

Harbor Funds—Equity Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

Although the Fund will generally enter into TBA and when-issued purchase commitments with the intention of acquiring securities for its portfolio, a Fund may dispose of a commitment prior to settlement if the Fund’s subadviser deems it appropriate to do so.

TBA Sale Commitments

Each Fund may enter into TBA sale commitments to hedge portfolio positions or to sell mortgage-backed securities owned under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date.

Unsettled TBA sale commitments are valued at the current market value of the underlying securities, generally according to the procedures described under “Security Valuation” above. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss on the commitment without regard to any unrealized gain or loss on the underlying security. If the Fund delivers securities under the commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date on which the commitment was entered.

Short Sales

Each Fund, except Harbor International Fund and Harbor International Growth Fund, may engage in short-selling which obligates the Fund to replace the security borrowed by purchasing it at the market price at the time of replacement. Until the security is replaced, the Fund is required to pay to the lender any accrued interest or dividends, and may be required to pay a premium. The Fund would realize a gain if the security declines in price between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund would incur a loss as a result of the short sale if the price of the security increases between those dates. Until the Fund replaces the borrowed security, it will maintain in a segregated account or set aside in the Fund’s records cash or liquid securities sufficient to cover its short position. Short sales involve the risk of an unlimited increase in the market price of a security.

Foreign Forward Currency Contracts

Consistent with its investment policies, each Fund may enter into foreign forward currency contracts to facilitate transactions in foreign securities or as a hedge against either specific transactions or portfolio positions. A foreign forward currency contract is an agreement between two parties to buy and sell currencies at a set price on a future date. The U.S. dollar value of the contracts is determined using forward currency exchange rates supplied by a pricing service selected by the Adviser. The contract is marked-to-market daily and the change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Losses may arise from changes in the value of the foreign currency, or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened; however, management of the Fund believes the likelihood of such loss is remote.

Foreign Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars based on the current exchange rates at period end. Purchases and sales of securities are translated into U.S. dollars at the current exchange rate on the respective dates of the transaction. Income and withholding taxes are translated at the prevailing exchange rate when accrued or incurred.

Reported net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income accrued and tax reclaims receivable and the U.S. dollar amount actually received.

Repurchase Agreements

Each Fund may enter into repurchase agreements with certain banks and broker dealers whereby the Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. The Trust’s custodian

30

Harbor Funds—Equity Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

takes possession through the federal book-entry system of securities collateralizing repurchase agreements. The value of the underlying assets at the time of purchase is required to be at least equal to the repurchase price to protect the Fund in the event of default by the seller.

Securities Lending

Certain Funds may engage in securities lending. The loans are secured by collateral which is at least equal to the market value of the loaned securities and is intended to be maintained at that level during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the respective Fund the next business day. During the term of the loan, the Fund will continue to receive any interest, dividends or amounts equivalent thereto, on the loaned securities while receiving a fee from the borrower or earning interest on the investment of the cash collateral. The cash collateral is maintained on each Fund’s behalf by the lending agent and is invested in the State Street Navigator Securities Lending Prime Portfolio. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the lender securities identical to the loaned securities. The Fund may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities and may share the interest earned on the collateral with the borrower. The Fund bears the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The market value of securities loaned, and related collateral for securities on loan, at October 31, 2008, by Fund, are as follows:

Fund	Collateral for Securities on Loan		Market Value of Securities on Loan
Harbor Capital Appreciation Fund	$	147,981	$	144,702
Harbor Mid Cap Growth Fund		132,261		129,102
Harbor Mid Cap Value Fund		16,449		16,011
Harbor Small Cap Value Fund		309,377		301,812

NOTE 2—TAX INFORMATION

The identified cost for federal income tax purposes of investments owned by each Fund (including earned discount on corporate short-term notes and commercial paper) and their respective gross unrealized appreciation and depreciation at July 31, 2008 are as follows:

			Gross Unrealized					Net Unrealized Appreciation/ (Depreciation)
	Identified Cost		Appreciation		(Depreciation)
HARBOR DOMESTIC EQUITY FUNDS
Harbor Capital Appreciation Fund*	$	7,535,583	$	1,506,266	$	(382,910	)	$	1,123,356
Harbor Mid Cap Growth Fund		652,908		51,886		(30,656	)		21,230
Harbor Small Cap Growth Fund*		455,844		125,159		(45,729	)		79,430
Harbor Small Company Growth Fund*		31,901		1,889		(2,894	)		(1,005	)
Harbor Large Cap Value Fund		241,087		7,279		(20,118	)		(12,839	)
Harbor Mid Cap Value Fund		92,824		2,374		(20,542	)		(18,168	)
Harbor SMID Value Fund		4,166		60		(1,692	)		(1,632	)
Harbor Small Cap Value Fund		1,441,763		369,960		(200,104	)		169,856
HARBOR INTERNATIONAL EQUITY FUNDS
Harbor International Fund*	$	21,201,095	$	8,278,318	$	(895,960	)	$	7,382,358
Harbor International Growth Fund*		1,212,720		70,145		(74,206	)		(4,061	)
Harbor Global Value Fund		93,390		1,004		(29,293	)		(28,289	)

* Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments.

31

111 South Wacker Drive, 34^th Floor Chicago, IL 60606-4302 1.800.422.1050 www.harborfunds.com

Trustees & Officers

David G. Van Hooser

Chairman, President & Trustee

Raymond J. Ball

Trustee

Howard P. Colhoun

Trustee

John P. Gould

Trustee

Rodger F. Smith

Trustee

Charles F. McCain

Chief Compliance Officer

Anmarie S. Kolinski

Treasurer

Erik D. Ojala

Vice President & Secretary

Brian L. Collins

Vice President

Charles P. Ragusa

Vice President

Jodie L. Crotteau

Assistant Secretary

Susan A. DeRoche

Assistant Secretary

Investment Adviser

Harbor Capital Advisors, Inc.

111 South Wacker Drive, 34^th Floor

Chicago, IL 60606-4302

Distributor & Principal Underwriter

Harbor Funds Distributors, Inc.

111 South Wacker Drive, 34^th Floor

Chicago, IL 60606-4302

312.443.4400

Shareholder Servicing Agent

Harbor Services Group, Inc.

P.O. Box 804660

Chicago, IL 60680-4108

1.800.422.1050

Custodian

State Street Bank & Trust Company

225 Franklin Street

Boston, MA 02110

Independent Registered Public Accounting Firm

Ernst & Young LLP

200 Clarendon Street

Boston, MA 02116

Legal Counsel

Wilmer Cutler Pickering

Hale and Dorr LLP

60 State Street

Boston, MA 02109

FD.QSOPH.EF

Quarterly Schedule of

Portfolio Holdings

July 31, 2008

Fixed Income Funds

Harbor High-Yield Bond Fund

Harbor Bond Fund

Harbor Real Return Fund

Harbor Short Duration Fund

Harbor Money Market Fund

Table of Contents

Harbor Fixed Income Funds
Portfolios of Investments
HARBOR HIGH-YIELD BOND FUND	2
HARBOR BOND FUND	7
HARBOR REAL RETURN FUND	19
HARBOR SHORT DURATION FUND	25
HARBOR MONEY MARKET FUND	27
Notes to Portfolios of Investments	29

Harbor High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Total Investments (% of net assets)

(Excludes net cash and short-term investments of 12.1%)

COMMON STOCKS—0.1%
	(Cost $66)
Shares			Value (000s)
	OIL, GAS & CONSUMABLE FUELS—0.1%
	5,000	Compton Petroleum Corp. (CAN)	$	50
CONVERTIBLE BONDS—2.1%
Principal Amount (000s)
	COMMERCIAL SERVICES & SUPPLIES —0.3%
		VeriFone Holdings Inc.
$	200	1.625%—06/15/20121,2		150
	ELECTRONIC EQUIPMENT & INSTRUMENTS—0.3%
		L-1 Identity Solutions Inc
	200	3.750%—05/15/2027		171
	HEALTH CARE EQUIPMENT & SUPPLIES—0.8%
		Integra LifeScience Holdings Corp.
	500	2.375%—06/01/20122		462
	HEALTH CARE PROVIDERS & SERVICES—0.1%
		Omnicare Inc.
	100	3.250%—12/15/2035		75
	HOTELS, RESTAURANTS & LEISURE—0.4%
		Shuffle Master Inc.
	250	1.250%—04/15/2024		240
	PHARMACEUTICALS—0.2%
		Mylan Inc.
	150	1.250%—03/15/2012		127
	TOTAL CONVERTIBLE BONDS     (Cost $1,300)			1,225
CORPORATE BONDS & NOTES—85.7%
	AEROSPACE & DEFENSE—1.1%
		Alliant Techsystems Inc.
	100	6.750%—04/01/2016		97
		Hexcel Corp.
	150	6.750%—02/01/2015		146
		Moog Inc.
	250	7.250%—06/15/20182		246
		TransDigm Inc.
	150	7.750%—07/15/2014		147
				636
	AUTO COMPONENTS—1.3%
		Goodyear Tire & Rubber Co.
	250	6.678%—12/01/20091		249
	400	7.857%—08/15/2011		399
	98	8.625%—12/01/2011		100
				748
	AUTOMOBILES—0.1%
		General Motors Nova Scotia Finance Co.
	100	6.850%—10/15/2008		99
	BEVERAGES—0.4%
		Constellation Brands Inc.
	250	7.250%—05/15/2017		243
	BUILDING PRODUCTS—0.2%
		Interface Inc.
	125	10.375%—02/01/2010		132
	CAPITAL MARKETS—0.4%
		Nuveen Investments Inc
	250	10.500%—11/15/20152		226

2

Harbor High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	CHEMICALS—1.8%
		Airgas Inc.
$	250	7.125%—10/01/20182	$	252
		Nalco Co.
	450	7.750%—11/15/2011		457
	200	8.875%—11/15/2013		208
				665
		Rockwood Specialties Group Inc.
	100	7.500%—11/15/2014		99
				1,016
	COMMERCIAL SERVICES & SUPPLIES—7.5%
		Allied Waste North America Inc. Series B
	500	7.125%—05/15/2016		488
		ARAMARK Corp.
	750	8.500%—02/01/2015		751
		Cardtronics Inc.
	100	9.250%—08/15/2013		95
		Casella Waste Systems Inc.
	150	9.750%—02/01/2013		148
		Corrections Corp of America
	500	7.500%—05/01/2011		508
		FTI Consulting Inc.
	500	7.750%—10/01/2016		514
		Iron Mountain Inc.
	350	7.750%—01/15/2015		352
	150	8.625%—04/01/2013		151
				503
		Mac-Gray Corp.
	300	7.625%—08/15/2015		288
		Service Corp International
	250	7.375%—10/01/2014		243
	250	7.500%—04/01/2027		206
				449
		Waste Services Inc.
	100	9.500%—04/15/2014		101
		West Corp.
	300	9.500%—10/15/2014		260
				4,105
	COMMUNICATIONS EQUIPMENT—0.9%
		Lucent Technologies Inc.
	500	5.500%—11/15/2008		500
	CONSUMER FINANCE—2.0%
		Ford Motor Credit Co.
	250	7.163%—04/15/20121		237
	350	7.375%—10/28/2009		319
				556
		GMAC LLC
	600	5.850%—01/14/2009		574
				1,130
	CONTAINERS & PACKAGING—2.3%
		BWAY Corp.
	150	10.000%—10/15/2010		151
		Crown Americas LLC
	350	7.625%—11/15/2013		357

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	CONTAINERS & PACKAGING—Continued
		Graham Packaging
$	300	8.500%—10/15/2012	$	280
		Graphic Packaging International Inc.
	250	8.500%—08/15/2011		240
		Owens Brockway Glass Container Inc.
	250	6.750%—12/01/2014		247
				1,275
	DIVERSIFIED CONSUMER SERVICES—0.3%
		Education Management LLC
	200	10.250%—06/01/2016		175
	DIVERSIFIED TELECOMMUNICATION SERVICES—6.8%
		Cincinnati Bell Inc.
	150	6.300%—12/01/2028		118
	500	8.375%—01/15/2014		479
				597
		Citizens Communications Co.
	600	6.250%—01/15/2013		571
		Nordic Telephone Co. Holdings ApS
	300	8.875%—05/01/20162		291
		PAETEC Holding Corp.
	400	9.500%—07/15/2015		367
		Qwest Communications International Inc.
	75	6.176%—02/15/20091		75
	500	7.500%—02/15/2014		464
				539
		Syniverse Technologies Inc. Series B
	350	7.750%—08/15/2013		333
		Time Warner Telecom Holdings Inc.
	250	9.250%—02/15/2014		255
		Windstream Corp.
	350	7.000%—03/15/2019		322
	500	8.625%—08/01/2016		509
				831
				3,784
	ELECTRIC UTILITIES—0.4%
		Edison Mission Energy
	250	7.200%—05/15/2019		236
	ELECTRICAL EQUIPMENT—0.9%
		Baldor Electric Co.
	500	8.625%—02/15/2017		504
	ELECTRONIC EQUIPMENT & INSTRUMENTS—0.7%
		Celestica Inc.
	150	7.625%—07/01/2013		144
	100	7.875%—07/01/2011		101
				245
		Flextronics International Ltd
	150	6.500%—05/15/2013		143
				388
	ENERGY EQUIPMENT & SERVICES—4.9%
		Basic Energy Services Inc.
	250	7.125%—04/15/2016		235
		Bristow Group Inc.
	500	7.500%—09/15/2017		495

3

Harbor High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	ENERGY EQUIPMENT & SERVICES—Continued
		CHC Helicopter Corp.
$	200	7.375%—05/01/2014	$	209
		Complete Production Services Inc.
	250	8.000%—12/15/2016		249
		Gulfmark Offshore Inc.
	200	7.750%—07/15/2014		198
		Helix Energy Solutions Group Inc.
	350	9.500%—01/15/20162		353
		Hornbeck Offshore Services Inc.
	350	6.125%—12/01/2014		337
		Key Energy Services Inc.
	250	8.375%—12/01/20142		253
		SandRidge Energy, Inc.
	400	8.000%—06/01/20182		397
				2,726
	FINANCE—0.4%
		GMAC LLC
	250	3.926%—05/15/20091		221
	FOOD & STAPLES RETAILING—0.6%
		Stater Brothers Holdings
	350	7.750%—04/15/2015		336
	FOOD PRODUCTS—1.1%
		B&G Foods Inc.
	100	8.000%—10/01/2011		99
		Del Monte Corp.
	250	8.625%—12/15/2012		257
		Michael Foods Inc.
	125	8.000%—11/15/2013		123
		NBTY Inc.
	150	7.125%—10/01/2015		142
				621
	GAS UTILITIES—2.2%
		Dynegy Holdings Inc.
	200	7.750%—06/01/2019		185
	300	8.375%—05/01/2016		299
				484
		Ferrellgas Partners LP
	200	8.750%—06/15/2012		187
		Inergy LP
	250	6.875%—12/15/2014		226
		Suburban Propane Partners LP
	350	6.875%—12/15/2013		325
				1,222
	HEALTH CARE EQUIPMENT & SUPPLIES—0.6%
		Advanced Medical Optics Inc.
	200	7.500%—05/01/2017		181
		Universal Hospital Services Inc.
	150	6.303%—06/01/20151		140
				321
	HEALTH CARE PROVIDERS & SERVICES—5.5%
		Biomet Inc.
	500	10.000%—10/15/2017		540
		Community Health Systems Inc.
	350	8.875%—07/15/2015		354

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	HEALTH CARE PROVIDERS & SERVICES—Continued
		DaVita Inc.
$	500	7.250%—03/15/2015	$	494
		HCA Healthcare Co.
	150	8.750%—09/01/2010		152
		HCA Inc.
	200	6.750%—07/15/2013		175
		Health Management Associates Inc
	150	6.125%—04/15/2016		131
		IASIS Healthcare LLC
	150	8.750%—06/15/2014		151
		Psychiatric Solutions Inc.
	400	7.750%—07/15/2015		393
		ReAble Therapeutics Finance LLC
	400	10.875%—11/15/20142		400
		Res-Care Inc.
	100	7.750%—10/15/2013		96
		United Surgical Partners International Inc.
	100	8.875%—05/01/2017		89
				2,975
	HOTELS, RESTAURANTS & LEISURE—4.9%
		Caesars Entertainment Inc.
	100	7.875%—03/15/2010		89
		Chukchansi Economic Development Authority
	100	6.328%—11/15/20121,2		82
	500	8.000%—11/15/20132		413
				495
		Gaylord Entertainment Co.
	250	8.000%—11/15/2013		234
		Global Cash Access LLC
	162	8.750%—03/15/2012		159
		Mandalay Resort Group
	100	7.000%—11/15/2036		101
		MGM Mirage
	400	6.000%—10/01/2009		392
		Mohegan Tribal Gaming Authority
	200	6.375%—07/15/2009		194
		Penn National Gaming Inc.
	100	6.875%—12/01/2011		93
		Pinnacle Entertainment Inc.
	100	8.250%—03/15/2012		95
		Scientific Games Corp.
	200	7.875%—06/15/20162		195
		Seminole Hard Rock Entertainment Inc.
	500	5.276%—03/15/20141,2		408
		Seneca Gaming Corp.
	250	7.250%—05/01/2012		227
				2,682
	HOUSEHOLD PRODUCTS—0.6%
		Da-Lite Screen Co. Inc.
	150	9.500%—05/15/2011		145
		Jostens (Visant)
	200	8.750%—12/01/2013		191
				336

4

Harbor High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	INDEPENDENT POWER PRODUCERS & ENERGY TRADERS—4.4%
		AES Corp.
$	250	8.000%—06/01/20202	$	242
		El Paso Corp.
	250	7.000%—06/15/2017		252
		Energy Future Holdings
	450	10.875%—11/01/20172		466
		IPALCO Enterprises Inc.
	500	7.250%—04/01/20162		504
		NRG Energy Inc.
	650	7.375%—02/01/2016-01/15/2017		631
		Texas Competitive Electric Holdings Co. LLC
	350	10.250%—11/01/20152		352
				2,447
	INDUSTRIAL—2.4%
		Education Management LLC
	300	8.750%—06/01/2014		272
		Inergy Finance Corp.
	250	8.250%—03/01/2016		242
		Intelsat Subsidiary Holding Co Ltd
	250	8.500%—01/15/20132		249
		Nielsen Finance LLC
	350	10.000%—08/01/2014		352
		Qwest Capital Funding Inc.
	250	7.250%—02/15/2011		239
				1,354
	INSURANCE—0.3%
		HUB International Holdings Inc.
	200	10.250%—06/15/20152		161
	IT SERVICES—2.7%
		Broadridge Financial Solutions Inc.
	250	6.125%—06/01/2017		211
		Lender Processing Services Inc.
	500	8.125%—07/01/20162		501
		Sungard Data Systems Inc.
	250	3.750%—01/15/2009		248
	300	9.125%—08/15/2013		308
	175	10.250%—08/15/2015		179
				735
				1,447
	LEISURE EQUIPMENT & PRODUCTS—0.3%
		Leslie’s Poolmart
	200	7.750%—02/01/2013		180
	MACHINERY—0.9%
		SPX Corp.
	250	7.625%—12/15/20142		256
		Terex Corp.
	250	8.000%—11/15/2017		246
				502
	MEDIA—7.6%
		Allbritton Communications Co.
	450	7.750%—12/15/2012		416
		Cablevision Systems Corp. Series B
	500	7.133%—04/01/20091		506
		Cadmus Communications Corp.
	150	8.375%—06/15/2014		123

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	MEDIA—Continued
		DirecTV Holdings LLC
$	1,000	8.375%—03/15/2013	$	1,038
		Echostar DBS Corp.
	300	6.625%—10/01/2014		276
	200	7.125%—02/01/2016		186
				462
		Lamar Media Corp.
	400	6.625%—08/15/2015		362
		LIN Television Corp.
	500	6.500%—05/15/2013		438
		Mediacom Broadband LLC
	100	8.500%—10/15/2015		90
		Mediacom LLC
	150	9.500%—01/15/2013		143
		Quebecor Media Inc.
	200	7.750%—03/15/2016		183
		Videotron Ltd
	250	6.875%—01/15/2014		243
	150	9.125%—04/15/20182		157
				400
				4,161
	METALS & MINING—1.6%
		AK Steel Corp.
	250	7.750%—06/15/2012		258
		Arch Western Finance LLC
	450	6.750%—07/01/2013		451
		Freeport-McMoRan Copper & Gold Inc.
	150	8.375%—04/01/2017		157
				866
	OIL, GAS & CONSUMABLE FUELS—10.4%
		Berry Petroleum Co.
	150	8.250%—11/01/2016		149
		Chesapeake Energy Corp.
	250	6.500%—08/15/2017		235
		Denbury Resources Inc.
	250	7.500%—04/01/2013		249
		El Paso Corp.
	500	7.250%—06/01/2018		498
		Encore Acquisition Co.
	250	6.000%—07/15/2015		228
	250	7.250%—12/01/2017		241
				469
		Exco Resources Inc.
	350	7.250%—01/15/2011		348
		Foundation PA Coal Co.
	300	7.250%—08/01/2014		303
		Mariner Energy Inc.
	250	8.000%—05/15/2017		237
		MarkWest Energy Partners LP
	250	8.750%—04/15/20182		250
		Massey Energy Co.
	200	6.625%—11/15/2010		200
	350	6.875%—12/15/2013		344
				544

5

Harbor High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	OIL, GAS & CONSUMABLE FUELS—Continued
		Peabody Energy Corp.
$	250	7.375%—11/01/2016	$	256
		PetroHawk Energy Corp.
	500	7.875%—06/01/20152		486
		Petroplus Finance Ltd.
	250	6.750%—05/01/20142		220
		Quicksilver Resources Inc.
	350	8.250%—08/01/2015		342
		Range Resources Corp.
	300	7.250%—05/01/2018		294
		Stone Energy Corp.
	250	8.250%—12/15/2011		244
		W&T Offshore Inc.
	400	8.250%—06/15/20142		379
		Williams Partners LP
	250	7.250%—02/01/2017		250
				5,753
	PAPER & FOREST PRODUCTS—2.4%
		Domtar Corp.
	750	7.875%—10/15/2011		752
		Georgia Pacific Corp.
	250	8.125%—05/15/2011		248
		NewPage Corp.
	250	10.000%—05/01/2012		241
		Verso Paper Holdings LLC
	100	9.125%—08/01/2014		90
				1,331
	PHARMACEUTICALS—0.5%
		Warner Chilcott Corp.
	250	8.750%—02/01/2015		252
	REAL ESTATE—0.9%
		Omega Healthcare Investors Inc.
	500	7.000%—04/01/2014		481

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
	SPECIALTY RETAIL—0.4%
		Sally Holdings LLC
$	250	9.250%—11/15/2014	$	245
	TEXTILES, APPAREL & LUXURY GOODS—0.2%
		Phillips-Van Heusen Corp.
	125	8.125%—05/01/2013		127
	WIRELESS TELECOMMUNICATION SERVICES—2.8%
		American Tower Corp.
	250	7.000%—10/15/20172		252
		Centennial Communications Corp.
	350	8.125%—02/01/2014		355
	250	8.541%—01/01/20131		250
				605
		Hughes Network Systems LLC
	350	9.500%—04/15/2014		356
		Intelsat Bermuda Ltd.
	250	11.250%—06/15/2016		261
				1,474
	TOTAL CORPORATE BONDS & NOTES     (Cost $48,609)			47,418
SHORT-TERM INVESTMENTS—10.3%
	(Cost $5,731)
	REPURCHASE AGREEMENTS
	5,731	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Bank Note (market value $5,850)		5,731
	TOTAL INVESTMENTS—98.2%     (Cost $55,706)			54,424
	CASH AND OTHER ASSETS, LESS LIABILITIES—1.8%			990
	TOTAL NET ASSETS—100.0%		$	55,414

1 Floating rate security. The stated rate represents the rate in effect at July 31, 2008.

2 Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. These securities are priced by an independent pricing service selected by the adviser (Harbor Capital Advisors, Inc.), or using valuation procedures approved by the Board of Trustees. At July 31, 2008, these securities were valued at $8,603 or 15% of net assets.

(CAN) Canada.

The accompanying notes are an integral part of the portfolio of investments.

6

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Total Investments (% of net assets)

(Excludes net cash and short-term investments of –11.5%)

ASSET-BACKED SECURITIES—2.8%
Principal Amount (000s)			Value (000s)
		ACE Securities Corp.
		Series 2006-ASP5 Cl. A2A
$	1,562	2.975%—10/25/20361,2	$	1,547
		American Express Credit Corp.
	4,400	5.875%—05/02/20132		4,324
		Argent Securities Inc. Pass Through Certificates
		Series 2006-M2 Cl. A2A
	849	2.533%—09/25/20361,2		842
		Asset Backed Funding Certificates
		Series 2006-HE1 Cl. A2A
	2,168	2.955%—01/25/20371,2		2,107
		BA Credit Card Trust
	4,200	3.094%—04/15/20131,2		4,171
	21,300	3.149%—12/15/20141,2		21,033
				25,204
		Bank of America Credit Card Trust1
	25,700	4.015%—12/16/20132		25,892
		Countrywide Asset-Backed Certificates
		Series 2006-19 Cl. 2A1
	2,344	2.659%—03/25/20371,2		2,304
		Series 2006-16 Cl. 2A1
	703	2.945%—12/25/20461,2		694
		Series 2001-BC3 Cl. A
	378	5.800%—12/25/20311,2		236
				3,234
		Credit-Based Asset Servicing & Securitization LLC
		Series 2006-CB9 Cl. A1
	2,708	2.955%—11/25/20361,2		2,489
		First Franklin Mortgage Loan Asset Backed Certificates
		Series 2006-FF9 Cl. 2A1
	6,475	2.543%—06/25/20361,2		6,362
		GSAMP Trust
	2,970	2.965%—09/25/2036-12/25/20361,2		2,897
		HSI Asset Securitization Corp Trust Pass Through Certificates
		Series 2006-HE2 Cl. 2A1
	1,724	2.945%—12/25/20361,2		1,571
		Indymac Residential Asset Backed Trust
		Series 2006-E Cl. 2A1
	1,587	2.955%—04/25/20371,2		1,552

ASSET-BACKED SECURITIES—Continued
Principal Amount (000s)			Value (000s)
		JP Morgan Mortgage Acquisition Corp. Pass Through Certificates
		Series 2006-WMC3 Cl. A2
$	915	2.945%—08/25/20361,2	$	883
		Long Beach Mortgage Loan Trust
		Series 2004-4 Cl. 1A1
	119	5.600%—10/25/20341,2		93
		Option One Mortgage Loan Trust
		Series 2007-1 Cl. 2A1
	2,431	5.370%—01/25/20371,2		2,347
		Park Place Securities Inc.
		Series 2004-MCW1 Cl. A1
	4,371	3.207%—10/25/20341,2		3,687
		Residential Asset Mortgage Products Inc. Pass Through Certificates
		Series 2006-RZ4 Cl. A1A
	2,588	3.456%—10/25/20361,2		2,407
		Residential Asset Securities Corp. Pass Through Certificates
		Series 2006-KS8 Cl. A1
	3,547	3.436%—10/25/20361,2		3,504
		Series 2006-KS9 Cl. AI1
	2,252	3.446%—11/25/20361,2		2,165
				5,669
		Saxon Asset Securities Trust
		Series 2006-3 Cl. A1
	1,029	3.436%—10/25/20461,2		1,015
		SBI Home Equity Loan Trust Pass Through Certificates Series 2006-1A Cl. 1A2A
	1,658	3.546%—08/25/20361,2,3		1,586
		Securitized Asset Backed Receivables LLC Pass Through Certificates Series 2007-HE1 Cl. 2A2
	3,010	2.955%—12/25/20361,2		2,825
		SLM Student Loan Trust
	1,726	3.220%—01/26/20151,2		1,716
		Small Business Administration
		Series 2003-20I Cl. 1
	646	5.130%—09/01/20232		639
		Series 2001-20A Cl. 1
	1,614	6.290%—01/01/20212		1,661
		Series 2000-P10 Cl.1
	102	7.449%—08/10/20102		104
				2,404
		Soundview Home Equity Loan Trust Series 2006-EQ1 Cl. A1
	1,033	3.426%—10/25/20361,2		1,006
		Wells Fargo Home Equity Trust Series 2006-3 Cl. A1
	1,364	2.945%—01/25/20371,2		1,328
	TOTAL ASSET-BACKED SECURITIES     (Cost $107,462)			104,987
BANK LOAN OBLIGATIONS—0.5%
		Chrysler Finance Co. (Term B)
	12,903	9.000%—08/03/20142		10,751

7

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

BANK LOAN OBLIGATIONS—Continued
Principal Amount (000s)			Value (000s)
		CSC Holdings Inc. (Cablevision Term B):
$	1,254	7.070%—03/29/20132	$	1,190
	505	7.110%—03/29/20132		479
				1,669
		First Data Corp (Term B2)
	1,862	7.634%—09/24/20142		1,716
		First Data Corp. (Term B1)
	1,802	5.210%—09/24/20142		1,661
	55	5.349%—09/24/2014		51
	133	5.446%—09/24/2014		123
	128	7.634%—09/24/20142		118
				1,953
		First Data Corp. (Term B3)
	1,852	5.230%—09/24/2014		1,707
	1,995	5.400%—09/24/2014		1,839
	133	7.580%—09/24/2014		123
				3,669
	TOTAL BANK LOAN OBLIGATIONS     (Cost $21,193)			19,758
COLLATERALIZED MORTGAGE OBLIGATIONS—5.9%
		American Home Mortgage Investment Trust REMIC4
		Series 2004-4 Cl. 4A
	1,994	4.390%—02/25/20451,2		1,420
		Banc of America Funding Corp. REMIC4
		Series 2005-D Cl. A1
	2,974	4.113%—05/25/20351,2		2,547
		Bear Stearns Adjustable Rate Mortgage Trust REMIC4
		Series 2005-10 Cl. A1
	9,278	4.750%—10/25/20351,2		9,087
		Pass Thru Certificates
		Series 2003-1 Cl. 6A1
	1,189	5.031%—04/25/20332,5		1,148
		Series 2000-2 Cl. A1
	140	6.099%—11/25/20301,2		138
				10,373
		Bear Stearns Alt-A Trust
		Pass Through Certificates
		Series 2005-7 Cl. 2A1
	1,881	5.706%—09/25/20352,5		1,534
		Bear Stearns Alt-A Trust REMIC4
		Series 2006-8 Cl. 3A1
	3,286	2.759%—02/25/20341,2		2,061
		Series 2005-4 Cl. 3A1
	3,815	5.372%—05/25/20352,5		3,246
				5,307
		Bear Stearns Commercial Mortgage Securities Pass Through
		Series 2007-PW18 Cl. A4
	6,400	5.700%—06/11/20502		5,975
		Bear Stearns Mortgage Funding Trust REMIC4
		Series 2007-AR1 Cl. 2A1
	6,233	2.669%—01/25/20371,2		5,550
		Bear Stearns Structured Products Inc.
		Series 2007-R7 Cl. A1
	4,169	2.593%—01/25/20371,3		4,044

COLLATERALIZED MORTGAGE OBLIGATIONS—Continued
Principal Amount (000s)			Value (000s)
		Countrywide Home Loan Mortgage Pass Through Trust
		Series 2004-HYB9 Cl. 1A1
$	7,430	4.718%—02/20/20352,5	$	6,717
		Series 2004-22 Cl. A3
	4,171	4.802%—11/25/20342,5		3,715
		Series 2003-10 Cl. A2
	192	5.750%—05/25/20332		192
				10,624
		Countrywide Home Loan Mortgage Pass Through Trust REMIC4
		Series 2005-HYB9 Cl. 3A2A
	1,311	5.250%—02/20/20361,2		1,110
		Federal Home Loan Mortgage Corp. REMIC4
	72,355	2.664%—07/15/2019-10/15/20201,2		70,816
	25,927	2.744%—02/15/20191,2		25,362
	3,218	2.814%—05/15/20361,2		3,149
	238	2.964%—11/15/20301,2		237
	4,555	5.000%—04/25/20332		4,479
	449	8.000%—08/15/20222		484
	66	9.000%—12/15/20202		70
				104,597
		Federal National Mortgage Association
	594	6.500%—12/25/20422		608
		Federal National Mortgage Association REMIC4
		Series 2006-5 Cl. 3A2
	845	4.689%—05/25/20351,2		847
		FHLMC Structured Pass Through Securities
	1,561	5.272%—08/15/20322,5		1,559
		FHLMC Structured Pass Through Securities REMIC4
		Series T-63 Cl. 1A1
	412	6.229%—02/25/20451,2		378
		First Nationwide Trust REMIC4
		Series 2001-3 Cl. 1A1
	18	6.750%—08/25/20312		18
		GSR Mortgage Loan Trust
		Pass Through Certificates
		Series 2005-AR7 Cl. 6A1
	4,991	5.248%—11/25/20352,5		4,386
		GSR Mortgage Loan Trust REMIC4
		Pass Through Certificates
		Series 2005-AR6 Cl. 2A1
	13,427	4.539%—09/25/20351,2		12,140
		Harborview Mortgage Loan Trust REMIC4
		Pass-through Certificates
		Series 2005-2 Cl. 2A1A
	783	5.758%—05/19/20351,2		508
		IndyMac ARM Trust REMIC4
		Series 2001-H2 Cl. A2
	21	6.395%—01/25/20321,2		17
		IndyMac Index Mortgage Loan Trust REMIC4
		Pass Through Certificates
		Series 2005-AR31 Cl. 1A1
	5,164	5.165%—01/25/20362,5		3,436
		J.P. Morgan Chase Commercial Mortgage Securities Trust 2006
	4,800	5.336%—05/15/20472		4,428
		J.P. Morgan Chase Commercial Mortgage Securities Trust 2007
	14,400	5.420%—01/15/20492		13,078
		Lehman Brothers Floating Rate Commercial Mortgage Trust
		Pass Through Certificates
		Series 2006-LLFA Cl. A1
	592	2.594%—09/15/20211,2,3		560

8

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

COLLATERALIZED MORTGAGE OBLIGATIONS—Continued
Principal Amount (000s)			Value (000s)
		Merrill Lynch Mortgage Investors Inc.
		Pass Through Certificates
		Series 2005-A10 Cl. A
$	2,362	5.530%—02/25/20361,2	$	1,916
		Series 2005-3 Cl. 4A
	704	5.570%—11/25/20351,2		636
				2,552
		Morgan Stanley Capital I Series 2007-XLFA Cl. A1
	1,294	2.575%—10/15/20201,2,3		1,193
		Residential Funding Mortgage Series 2006-SA1 Cl. 2A1
	1,304	5.590%—02/25/20362,5		1,129
		Sovereign Commercial Mortgage Securities Series 2007-C1 Cl. A2
	1,100	5.835%—07/22/20302,3,5		1,073
		Structured Asset Mortgage Investments Inc. Pass Through Certificates Series 2005-AR5 Cl. A2
	2,603	2.809%—07/19/20351,2		2,361
		Structured Asset Securities Corp. REMIC4 Series 2002-1A Cl. 4A
	45	6.063%—02/25/20321,2		41
		Series 2001-21A Cl. 1A1
	44	7.131%—01/25/20321,2		44
				85
		Thornburg Mortgage Securities Trust REMIC4 Pass Through Certificates Series 2006-6 Cl. A1
	3,238	3.245%—11/25/20461,2		3,101
		Wachovia Bank Commercial Mortgage Trust Series 2006-WHL7 Cl. A1
	12,008	2.604%—09/11/20211,2,3		11,278
		Washington Mutual REMIC4 Pass Through Certificates Series 2005-AR13 Cl. A1A1
	880	3.666%—10/25/20451,2		558
		Wells Fargo Mortgage Backed Securities REMIC4 Series 2006-AR2 Cl. A1
	4,990	4.950%—03/25/20362,5		4,575
	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS     (Cost $238,188)			222,949
CORPORATE BONDS & NOTES—34.0%
		Access Group Inc.
	23,600	4.090%—10/27/20251		23,364
		Allstate Life Global Funding Trusts
	4,600	5.375%—04/30/20132		4,607
		American Airlines Inc. Series 2001-2 Cl. A1
	185	6.978%—04/01/20112		175
		American Express Bank
	6,500	5.500%—04/16/20132		6,301
	9,500	6.000%—09/13/20172		8,806
				15,107
		American Express Centurion Bank
	9,500	6.000%—09/13/20172		8,836
		American Express Global
	6,400	7.000%—03/19/20182		6,376

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		American Honda Finance Corp. MTN6
$	5,700	2.784%—02/09/20101,2,3	$	5,673
		American International Group Inc.
	235	8.050%—08/01/20112		13,523
	900	5.050%—10/01/20152		803
				14,326
		Amgen Inc.
	24,000	6.900%—06/01/20382		24,659
		Anadarko Petroleum Corp.
	15,200	3.200%—09/15/20091,2		15,074
		Anheuser-Busch Cos Inc.
	200	5.500%—01/15/20182		185
		ANZ National International Ltd.
	5,000	3.168%—08/07/20091,2,3		4,992
		AstraZeneca plc
	1,700	5.900%—09/15/20172		1,751
	1,600	6.450%—09/15/20372		1,642
				3,393
		AT&T Inc.
	4,200	4.950%—01/15/20132		4,205
	5,000	5.500%—02/01/20182		4,890
	2,900	6.300%—01/15/20382		2,737
				11,832
		Barclays Bank plc
	26,700	5.450%—09/12/20122		26,713
		Bear Stearns Cos. Inc.
	13,700	3.218%—07/19/20101,2		13,579
	4,971	6.400%—10/02/2017		4,877
				18,456
		Bear Stearns Cos. Inc. MTN6
	4,800	2.786%—03/30/20091,2		4,783
	12,200	3.500%—08/21/20091,2		12,152
	14,831	6.950%—08/10/20122		15,301
				32,236
		BellSouth Corp.
	11,200	2.776%—08/15/20081,2		11,201
		BNP Paribas
	9,600	5.186%—06/29/20492,3,5		8,254
		Calabash Re Ltd. Series 2006-I Cl. A1
	1,100	11.200%—01/08/20101,3		1,093
		Cemex Inc.
	3,100	6.722%—12/01/20492,3,5		2,831
		China Development Bank
	600	5.000%—10/15/20152		584
		CIT Group Inc.
	1,700	2.729%—12/19/20081,2		1,667
	4,600	3.401%—01/30/20091,2		4,401
				6,068
		CIT Group Inc. MTN6
	2,900	2.826%—08/15/20081,2		2,900
	8,700	2.839%—08/17/20091,2		7,972
				10,872
		Citigroup Capital XXI
	10,400	8.300%—12/21/20572,5		9,520

9

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		Citigroup Funding Inc. MTN6
$	1,200	2.898%—04/23/20091,2	$	1,186
	10,300	2.980%—12/08/20081,2		10,270
	3,600	4.858%—06/26/20091,2		3,555
				15,011
		Citigroup Inc.
	4,700	2.695%—12/26/20081,2		4,687
	9,000	2.701%—12/28/20091,2		8,800
	1,700	5.300%—10/17/20122		1,650
	20,500	5.500%—08/27/2012-04/11/20132		20,039
	1,100	5.850%—07/02/20132		1,085
	6,200	6.000%—08/15/20172		5,874
	5,600	6.125%—08/25/20362		4,695
	37,100	8.400%—04/29/20492,5		31,813
				78,643
		Codelco Inc.
	500	6.150%—10/24/20362,3		470
		Comcast Corp.
	5,500	3.010%—07/14/20091,2		5,437
	1,200	5.875%—02/15/20182		1,158
	1,200	6.450%—03/15/20372		1,102
				7,697
		Daimler Chrysler Auto Trust Series 2008-B Cl. A2B
	8,200	3.378%—07/08/20111,2		8,228
		Series 2008-B Cl. A3B
	3,300	3.928%—09/10/20121,2		3,325
				11,553
		DaimlerChrysler North America Holding Corp. MTN6
	6,300	3.218%—03/13/20091,2		6,273
	4,400	3.562%—08/03/20091,2		4,366
				10,639
		Dell Inc.
	8,800	5.650%—04/15/20182,3		8,591
		Deutsche Bank AG
	8,400	6.000%—09/01/20172		8,423
		Dominion Resources Inc.
	27,970	3.864%—06/17/20101,2		28,000
		El Paso Corp. MTN6
	200	8.050%—10/15/20302		204
		Enel Finance International SA
	12,600	6.250%—09/15/20172,3		12,768
		Export-Import Bank of China
	600	4.875%—07/21/20152,3		583
		Fifth Third Bank Corp.
	21,900	8.250%—03/01/20382		17,247
		Ford Credit Auto Owner Trust
	24,200	3.714%—12/15/20101,2		24,299
		Ford Motor Credit Co.
	4,430	7.250%—10/25/20112		3,351
		Gaz Capital SA
	900	6.212%—11/22/20162,3		832
		Gazprom LPN
	4,400	10.500%—10/21/20092		4,714
		General Electric Capital Corp.
	14,500	5.500%—09/15/20672		20,252

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		General Electric Capital Corp. MTN6
$	10,100	2.746%—08/15/20111,2	$	9,896
	900	2.768%—01/05/20091,2		900
	2,700	2.888%—01/20/20101,2		2,689
	5,500	2.918%—10/21/20101,2		5,468
	2,000	2.928%—01/08/20161,2		1,875
	900	2.937%—10/26/20091,2		898
	23,519	2.953%—03/20/20131,2		22,073
	6,400	5.875%—01/14/20382		5,766
				49,565
		General Electric Capital Corp. Series A
	6,300	2.788%—10/06/20101,2		6,258
		GMAC LLC
	800	6.000%—12/15/20112		501
		Goldman Sachs Group Inc.
	1,900	2.639%—12/23/20081,2		1,896
	7,700	2.689%—06/23/20091,2		7,658
	22,200	5.950%—01/18/20182		21,126
	5,600	6.150%—04/01/20182		5,404
	9,100	6.250%—09/01/20172		8,901
				44,985
		Goldman Sachs Group Inc. MTN6
	6,500	2.746%—03/30/20091,2		6,466
	5,000	3.186%—11/10/20081,2		4,992
	8,780	3.250%—07/23/20091,2		8,717
				20,175
		H.J. Heinz Co.
	800	6.428%—12/01/20202,3		806
		HBOS plc MTN6
	800	5.920%—09/29/20492,3,5		520
		HBOS Treasury Services plc MTN6
	7,300	2.749%—07/17/20091,2,3		7,298
		HSBC Bank USA
	5,400	3.130%—06/10/20091,2		5,378
		HSBC Finance Corp.
	3,300	2.794%—10/21/20091,2		3,235
	2,900	2.930%—09/15/20081,2		2,899
				6,134
		HSBC Finance Corp. MTN6
	4,200	3.154%—12/05/20081,2		4,187
		HSBC Holdings plc
	1,700	6.500%—05/02/20362		1,555
		ICICI Bank Ltd.
	7,100	3.250%—01/12/20101,2,3		6,876
		JP Morgan Chase Bank
	7,000	6.000%—10/01/20172		6,809
	24,227	6.625%—03/15/20122		25,004
				31,813
		JP Morgan Chase Capital XX
	800	6.550%—09/29/20362		657
		Key Bank NA
	8,500	4.682%—06/02/20101,2		8,501
		Korea Development Bank
	15,000	2.928%—04/03/20101,2		14,811
		Lehman Brothers Holdings Inc.
	11,900	2.778%—08/21/20091,2		11,169
	13,270	3.487%—01/26/20171,2		9,573
	2,200	6.875%—05/02/20182		2,069
				22,811

10

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		Lehman Brothers Holdings Inc. MTN6
$	7,500	2.774%—04/03/20091,2	$	7,208
	3,400	2.954%—07/18/20111,2		2,989
	3,000	2.966%—11/10/20091,2		2,784
	1,100	3.233%—05/25/20101,2		1,018
	200	5.410%—12/23/20081,2		197
	5,000	5.625%—01/24/20132		4,679
				18,875
		Merrill Lynch & Co. Inc.
	12,700	3.400%—05/02/20171,2		10,347
	5,100	6.400%—08/28/20172		4,663
	13,000	6.875%—04/25/20182		12,190
				27,200
		Merrill Lynch & Co. Inc. MTN6
	5,400	3.138%—12/04/20091,2		5,201
	4,400	3.158%—08/14/20091,2		4,274
	15,500	3.178%—05/08/20091,2		15,166
				24,641
		MetLife Inc.
	1,600	6.400%—12/15/20362		1,364
		Metropolitan Life Global Funding I MTN6
	8,800	3.110%—05/17/20101,2,3		8,689
		Monumental Global Funds
	3,400	1.000%—04/22/20132,3		3,414
		Morgan Stanley
	10,800	2.820%—05/07/20091,2		10,679
	9,400	4.778%—05/14/20101,2		9,330
				20,009
		Morgan Stanley MTN6
	14,400	2.803%—01/15/20101,2		14,007
		MUFG Capital Finance 1 Ltd.
	700	6.346%—07/29/20492,5		601
		National Australia Bank Ltd.
	4,700	2.731%—09/11/20091,2,3		4,698
	32,300	3.208%—02/08/20101,2,3		32,316
				37,014
		Nationwide Life Global Funding
	43,200	5.450%—10/02/20122,3		42,822
		NGPL PipeCo LLC
	4,000	6.514%—12/15/20122,3		4,040
		Oracle Corp.
	10,200	4.950%—04/15/20132		10,312
	10,000	5.750%—04/15/20182		9,995
				20,307
		Peabody Energy Corp.
	1,500	7.875%—11/01/20262		1,508
		Petroleum Export Ltd.
	481	5.265%—06/15/20112,3		468
		Philip Morris International Inc.
	3,000	5.650%—05/16/20182		2,911
		Pricoa Global Funding
	6,200	2.999%—01/30/20121,2,3		5,964
	5,200	2.855%—09/27/20131,2,3		4,872
				10,836

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		Principal Life Inc.
$	4,100	5.300%—04/24/20132	$	4,098
	6,400	5.550%—04/27/20152		6,305
				10,403
		Qwest Capital Funding Inc.
	43	7.250%—02/15/20112		41
		Qwest Corp.
	300	7.500%—06/15/20232		248
	2,400	7.625%—06/15/20152		2,202
				2,450
		Ras Laffan LNG III Series B
	1,800	5.838%—09/30/20272,3		1,555
		Resona Bank Ltd.
	800	5.850%—09/29/20492,3,5		656
		Rohm & Haas Co.
	2,500	6.000%—09/15/20172		2,448
		Santander Perpetual SA Unipersonal
	10,500	6.671%—10/29/20492,3,5		9,957
		Santander US Debt SA Unipersonal
	5,000	3.074%—11/20/20091,2,3		4,956
		Siemens Finance NV
	6,100	3.118%—08/14/20091,2,3		6,103
	18,000	5.500%—02/16/20122,3		18,642
				24,745
		SMFG Preferred Capital USD 1 Ltd.
	2,300	6.078%—12/29/20492,3,5		1,887
		State Street Capital Trust III
	4,500	8.250%—12/29/20492,5		4,548
		State Street Capital Trust IV
	700	3.800%—06/01/20771,2		524
		Sumitomo Mitsui Banking Corp.
	5,900	5.625%—12/31/20492,3,5		5,307
		Sun Life Financial Global Funding
	24,500	2.888%—07/06/20111,2,3		24,218
		Target Corp.
	7,900	5.125%—01/15/20132		8,001
		Time Warner Inc.
	4,400	3.300%—11/13/20091,2		4,301
		TNK-BP Finance SA
	900	6.125%—03/20/20122,3		843
		Transocean Inc.
	4,400	3.214%—09/05/20081,2		4,399
		UBS AG
	23,700	3.704%—05/05/20101,2		23,624
	3,600	5.750%—04/25/20182		3,430
	3,200	5.875%—12/20/20172		3,118
				30,172
		UFJ Finance Aruba AEC
	200	6.750%—07/15/20132		208
		Union Pacific Corp.
	9,400	5.700%—08/15/20182		9,099
		United Airlines Inc. Pass Through Certificates
	1,799	9.060%—06/17/2015		18	*
		United Health Group Inc.
	3,700	4.875%—02/15/20132		3,587

11

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)				Value (000s)
			US Bank Capital IX
$	700		6.189%—04/29/20492,5	$	490
			Vale Overseas Ltd.
	900		6.250%—01/23/20172		889
	900		6.875%—11/21/20362		864
					1,753
			Verizon Communications Inc.
	14,700		2.734%—04/03/20091,2		14,671
	400		5.250%—04/15/20132		401
					15,072
			Virginia Electric and Power Co.
	600		6.350%—11/30/20372		586
			Wachovia Bank NA
	8,100		2.639%—03/23/20091,2		8,086
	6,900		2.758%—10/03/20081,2		6,894
					14,980
			Wachovia Corp.
	1,600		5.625%—10/15/20162		1,324
	10,200		5.750%—02/01/2018		8,621
	125,300		7.980%—02/28/20492,5		96,519
					106,464
			Wachovia Corp. MTN6
	3,800		3.126%—12/01/20091,2		3,667
	TOTAL CORPORATE BONDS & NOTES     (Cost $1,356,525)				1,288,576
FOREIGN GOVERNMENT OBLIGATIONS—0.5%
			ANZ National International Ltd
	6,200		6.200%—07/19/20132,3		6,208
			Federative Republic of Brazil
	2,200		10.250%—01/10/20282		1,275
			National Australia Bank Ltd.
	5,100		5.350%—06/12/20132,3		5,016
			Royal Bank of Scotland Group plc MTN6
	5,700		7.640%—03/31/20492,5		4,769
			TransCapitalInvest Ltd
	2,200		8.700%—08/07/20183		2,239
	TOTAL FOREIGN GOVERNMENT OBLIGATIONS     (Cost $20,697)				19,507
MORTGAGE PASS-THROUGH—64.1%
			Federal Home Loan Mortgage Corp.
	10,100		4.875%—06/13/20182		10,283
	6,827		5.000%—10/01/2018-12/14/20182		6,437
	1,382		5.034%—08/01/20351,2		1,385
	35,053		5.500%—05/01/2037-07/01/20382		34,308
	11,054		6.000%—07/01/2016-04/01/20382		11,161
	—	a	6.000%—07/01/2036-12/01/2037		—	a
	68		7.238%—06/01/20241,2		69
					63,643
			Federal Home Loan Mortgage Corp. TBA7
	103,000		5.500%—08/13/2038-12/01/2099		100,728
			August Delivery
	56,500		6.000%—08/13/2038		56,791
					157,519

MORTGAGE PASS-THROUGH—Continued
Principal Amount (000s)			Value (000s)
		Federal Housing Authority Project
		221D4 Banco-5
$	90	7.400%—02/01/2021	$	90
		221D4 Greystone 98-4
	2,747	7.430%—10/01/2020		2,754
				2,844
		Federal National Mortgage Association
	5,671	4.687%—08/01/20351,2		5,676
	13,120	4.833%—06/01/20351,2		13,217
	246,628	5.000%—12/01/2016-07/01/20382		236,786
	60,413	5.000%—07/01/2018-03/01/2038		57,629
	1,051	5.070%—05/01/20351,2		1,041
	845,772	5.500%—11/01/2016-05/01/20382		830,602
	282,240	6.000%—04/01/2016-05/01/20382		284,203
	1,262	6.429%—10/01/20401,2		1,261
	14	9.000%—11/01/20092		14
				1,430,429
		Federal National Mortgage Association TBA7
	204,900	5.000%—08/18/2023-08/13/2038		194,767
	2,300	5.500%—08/18/2023		2,308
		August Delivery
	260,300	5.500%—08/13/2038		254,728
		March Delivery
	54,000	5.500%—12/01/2099		52,895
		August Delivery
	246,300	6.000%—08/13/2038		247,416
		April Delivery
	6,000	6.000%—12/01/2099		6,157
				758,271
		Government National Mortgage Association
	3,800	6.000%—03/15/2037-03/15/20382		3,849
		Government National Mortgage Association I TBA7
	3,400	6.000%—08/20/2038		3,423
		Government National Mortgage Association I TBA7
	3,600	6.000%—08/20/2038		3,694
		August Delivery
	6,000	6.000%—08/20/2038		6,065
				9,759
		Government National Mortgage Association II
	1,332	4.750%—07/20/2024-02/20/20321,2		1,335
	58	5.125%—10/20/2025-12/20/20261,2		58
	658	5.625%—08/20/2022-07/20/20271,2		665
	418	6.125%—12/20/2024-11/20/20291,2		421
	435	6.375%—03/20/2017-02/20/20251,2		439
				2,918
	TOTAL MORTGAGE PASS-THROUGH     (Cost $2,456,570)			2,432,655
MUNICIPAL BONDS—1.4%
		Badger Tobacco Asset Securitization Corp.
	4,300	6.375%—06/01/20322		4,159
		Buckeye Tobacco Settlement Financing Authority
	2,800	5.875%—06/01/20302		2,420
		California St
	15,700	5.000%—11/01/20372		15,229
		Chicago Transit Authority
	500	6.300%—12/01/2021		508
	11,200	6.899%—12/01/2040		11,373
				11,881

12

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

MUNICIPAL BONDS—Continued
Principal Amount (000s)			Value (000s)
		City of San Antonio TX
$	6,765	4.750%—05/15/20372	$	6,399
		Los Angeles Community College 2003
	8,500	5.000%—08/01/20312		8,589
		University of Arkansas
	3,900	5.000%—11/01/20312		3,921
	TOTAL MUNICIPAL BONDS     (Cost $52,281)			52,598
U.S. GOVERNMENT OBLIGATIONS—2.2%
	(Cost $85,330)
		WI Treasury
	85,600	2.125%—04/30/20102		85,266
PURCHASED OPTIONS—0.1%
No. of Contracts (000s)
		Swap Option
	397,300	Expire 12/15/2008		999
	209,700	Expire 02/02/2009		991
	36,800	Expire 07/02/2009		190
	276,900	Expire 08/03/2009		1,541
	179,100	Expire 02/04/2011		488
	TOTAL PURCHASED OPTIONS     (Cost $11,086)			4,209
SHORT-TERM INVESTMENTS—14.5%
Principal Amount (000s)
	BANK OBLIGATIONS
		American Honda Finance Corp. MTN6
$	4,200	4.868%—08/05/20082		4,200
		Bank of Ireland
	15,250	5.400%—01/15/20102		15,248
		Calyon Bank
	1,100	5.395%—06/29/20102		1,099

SHORT-TERM INVESTMENTS—Continued
Principal Amount (000s)			Value (000s)
	BANK OBLIGATIONS—Continued
		Dexia Credit Local SA
$	24,900	5.270%—09/29/20082	$	24,885
		Fortis Bank
	4,800	5.300%—09/30/20082		4,800
		Nordea Bank Finland plc
	10,000	5.308%—04/09/20092		9,999
		Skandinaviska Enskilda Banken
	10,100	5.340%—08/21/20082		10,100
				70,331
	COMMERCIAL PAPER
		CitiBank Omni
	17,800	3.570%—10/23/2008		17,654
	51,100	3.580%—10/23/20082		50,678
				68,332
		Danske Corp.
	25,700	2.700%—09/15/20082		25,613
		Societe Generale North America Inc.
	66,600	2.720%—08/06/20082		66,575
				160,520
	REPURCHASE AGREEMENTS
	35,000	Repurchase Agreement with Credit Suisse First Boston dated July 31, 2008 due August 1, 2008 at 2.000% collateralized by U.S. Treasury Notes (market value $35,002)2		35,000
	277,800	Repurchase Agreement with Deutsche Bank AG dated July 31, 2008 due August 1, 2008 at 2.050% collateralized by U.S. Treasury Notes (market value $277,816)2		277,800
	5,145	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by a Federal National Mortgage Association Note (market value $5,252)		5,145
				317,945
	TOTAL SHORT-TERM INVESTMENTS     (Cost $548,796)			548,796
	TOTAL INVESTMENTS—126.0%     (Cost $4,898,128)			4,779,301
	CASH AND OTHER ASSETS, LESS LIABILITIES—(26.0)%			(987,663	)
	TOTAL NET ASSETS—100.0%		$	3,791,638

FUTURES CONTRACTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Number of Contracts	Aggregate Face Value (000s)		Expiration Date	Unrealized Appreciation/ (Depreciation) (000s)
Euribor Futures (Buy)	95	$	23,750	Sep-08	$	12
Euribor Futures (Buy)	294		73,500	Dec-08		203
Euribor Futures (Buy)	199		49,750	Mar-09		319
Euro CME (Buy)	5,770		1,442,500	Dec-08		16,319
Euro CME (Buy)	1,264		316,000	Sep-09		(536	)
Euro Gas Futures (Buy)	118		29,500	Jun-09		220
Eurodollar Futures (Buy)	4,178		1,044,500	Mar-09		6,646
Eurodollar Futures (Buy)	2,370		592,500	Jun-09		(51	)
Eurodollar Futures (Buy)	954		238,500	Dec-09		(888	)
Eurodollar Futures (Buy)	717		179,250	Mar-10		(653	)
U.S. Treasury Notes 10 Yr. Futures (Buy)	1,307		130,700	Sep-08		2,474

13

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

FUTURES CONTRACTS—Continued

Description	Number of Contracts	Aggregate Face Value (000s)		Expiration Date	Unrealized Appreciation/ (Depreciation) (000s)
United Kingdom 90 Day Futures (Buy)	556	$	69,500	Dec-08	$	(387	)
United Kingdom 90 Day Futures (Buy)	1,102		137,750	Mar-09		1,143
United Kingdom 90 Day Futures (Buy)	60		7,500	Dec-09		(80	)
United Kingdom LIBOR Futures (Buy)	722		90,250	Jun-09		762
					$	25,503

FORWARD CURRENCY CONTRACTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Currency	Market Value (000s)		Aggregate Face Value (000s)		Delivery Date	Unrealized Appreciation/ (Depreciation) (000s)
Australian Dollar (Buy)	$	1,456	$	1,508	Aug-08	$	(52	)
Brazilian Real (Buy)		79,706		72,041	Dec-08		7,664
Brazilian Real (Sell)		19,594		17,464	Dec-08		(2,130	)
Chilean Pesos (Buy)		1,016		1,068	Dec-08		(51	)
Euro Currency (Sell)		55,992		56,981	Jul-08		989
Indian Rupee (Buy)		5,328		5,745	Aug-08		(417	)
Indian Rupee (Buy)		21,004		22,169	Nov-08		(1,166	)
Indian Rupee (Sell)		5,328		5,376	Aug-08		47
Indonesian Rupiah (Buy)		1,825		1,773	Oct-08		52
Kuwaiti Dinar (Buy)		579		587	Apr-09		(8	)
Malaysian Ringgit (Buy)		7,570		7,650	Nov-08		(79	)
Malaysian Ringgit (Buy)		3,770		3,840	Feb-09		(70	)
Philippine Peso (Buy)		10,612		10,639	Aug-08		(27	)
Philippine Peso (Buy)		5,931		5,951	Nov-08		(20	)
Philippine Peso (Sell)		5,967		5,973	Aug-08		7
Pound Sterling (Buy)		327		328	Aug-08		(1	)
Pound Sterling (Sell)		86,707		86,442	Aug-08		(265	)
Russian Ruble-New (Buy)		5,675		5,409	Nov-08		266
Russian Ruble-New (Buy)		5,612		5,533	May-09		79
Russian Ruble-New (Sell)		5,675		5,647	Nov-08		(28	)
Russian Ruble-New (Sell)		5,612		5,495	May-09		(117	)
Saudi Riyal (Buy)		557		562	Apr-09		(5	)
Singapore Dollar (Buy)		24,951		24,673	Nov-08		278
South African Rand (Buy)		450		406	Dec-08		44
South Korean Won (Buy)		14,455		15,267	Aug-08		(813	)
South Korean Won (Sell)		14,455		14,141	Aug-08		(313	)
Swedish Krona (Buy)		1,792		1,790	Sep-08		1
U.A.E. Dirham (Buy)		557		563	Apr-09		(6	)
Yuan Renminbi (Buy)		8,973		8,928	Nov-08		45
Yuan Renminbi (Buy)		29,788		30,012	Jul-09		(224	)
						$	3,680

TBA COMMITMENTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Principal Amount (000s)		Coupon Rate		Delivery Date	Value (000s)
Federal Home Loan Mortgage Corporation (proceeds receivable $19,018)	$	19,000	5.500	%	Aug-38	$	18,605
Federal National Mortgage Association (proceeds receivable $102)		100	6.500	%	Aug-38		103
Federal National Mortgage Association (proceeds receivable $6,043)		6,000	6.000	%	Aug-38		6,156
Federal National Mortgage Association (proceeds receivable $54,391)		54,000	5.500	%	Aug-38		52,895
Government National Mortgage Associate (proceeds receivable $7,182)		7,000	6.000	%	Aug-38		7,117
						$	84,876

14

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

SWAP AGREEMENTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Interest Rate Swaps Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date	Notional Amount (000s)		Unrealized Appreciation/ (Depreciation) (000s)
UBS AG	3-Month AUD BBR-BBSW	Pay	7.000	%	09/15/2009	AUD$	80,300	$	(425	)
UBS AG	3-Month AUD BBR-BBSW	Pay	7.500		03/15/2010		5,400		30
UBS AG	6-Month AUD BBR-BBSW	Pay	7.500		03/15/2011		36,500		44
Deutsche Bank AG	6-Month AUD BBR-BBSW	Pay	7.000		03/20/2013		5,800		(93	)
Deutsche Bank AG	6-Month AUD BBR-BBSW	Receive	6.500		03/20/2018		8,000		179
Barclays Capital, London	3-Month BRL-Banco Central do Brazil	Pay	11.360		01/04/2010	R$	11,700		(296	)
Merrill Lynch & Co., Inc.	3-Month BRL-Banco Central do Brazil	Pay	11.430		01/04/2010		10,700		(260	)
UBS AG	Brazil Cetip Interbank Deposit Rate	Pay	12.410		01/04/2010		7,800		(77	)
Morgan Stanley Capital Services, Inc.	Brazil Cetip Interbank Deposit Rate	Pay	12.670		01/04/2010		7,800		(79	)
Morgan Stanley Capital Services, Inc.	3-Month BRL-Banco Central do Brazil	Receive	12.780		01/04/2010		10,400		(80	)
Merrill Lynch & Co., Inc.	3-Month BRL-Banco Central do Brazil	Pay	12.948		01/04/2010		4,400		(23	)
UBS AG	Business Day-CDI	Pay	10.575		01/02/2012		17,500		(586	)
Merrill Lynch & Co., Inc.	Business Day-CDI	Pay	11.980		01/02/2012		13,000		(347	)
UBS AG	Business Day-CDI	Pay	12.540		01/02/2012		15,400		(280	)
HSBC Bank USA, N.A.	Brazil Cetip Interbank Deposit	Pay	14.765		01/02/2012		900		—
Barclays Capital, London	6-Month GBP-LIBOR	Pay	6.000		12/20/2008	£	17,700		(85	)
Deutsche Bank AG	6-Month GBP-LIBOR	Pay	6.000		12/20/2008		10,600		(54	)
Royal Bank of Scotland	6-Month GBP-LIBOR	Pay	6.000		03/20/2009		9,300		(66	)
Barclays Capital, London	6-Month GBP-LIBOR	Pay	6.000		03/20/2009		10,000		(66	)
Barclays Capital, London	6-Month GBP-LIBOR	Pay	5.000		06/15/2009		10,600		159
Credit Suisse International	6-Month GBP-LIBOR	Pay	5.000		06/15/2009		2,100		19
HSBC Bank USA, N.A.	6-Month BBA-LIBOR	Pay	5.000		09/17/2013		6,400		(330	)
Merrill Lynch & Co., Inc.	6-Month GBP-LIBOR	Receive	4.000		12/15/2035		2,000		56
Barclays Capital, London	6-Month GBP-LIBOR	Receive	4.000		12/15/2036		2,200		162
Royal Bank of Scotland	6-Month GBP-LIBOR	Receive	4.000		12/15/2036		6,100		260
Deutsche Bank AG	6-Month GBP-LIBOR	Receive	4.000		12/15/2036		5,400		(461	)
HSBC Bank USA, N.A.	6-Month GBP-LIBOR	Receive	4.000		12/15/2036		4,000		154
BNP Paribas Bank	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	2.090		10/15/2010	€	7,200		(55	)
Barclays Capital, London	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	2.102		10/15/2010		1,000		(8	)
UBS Warburg AG	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	2.145		10/15/2010		1,300		(7	)
Royal Bank of Scotland	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	1.950		03/30/2012		3,500		(148	)
Royal Bank of Scotland	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	1.955		03/28/2012		2,200		(91	)
Barclays Bank PLC	6-Month EUR-EURIBOR	Pay	0.710		02/05/2009	$	11,300		(39	)
Barclays Bank PLC	6-Month EUR-EURIBOR	Pay	0.763		02/05/2009		22,500		(73	)
Morgan Stanley Capital Services, Inc.	3-Month USD LIBOR	Pay	4.000		06/17/2010		242,300		1,016
Royal Bank of Scotland	3-Month USD LIBOR	Pay	4.000		06/17/2010		53,500		256
Deutsche Bank AG	3-Month USD LIBOR	Pay	4.000		12/17/2010		700		(2	)
Royal Bank of Scotland	3-Month USD LIBOR	Pay	4.000		12/17/2010		21,100		(15	)
Morgan Stanley Capital Services, Inc.	3-Month USD LIBOR	Receive	5.000		12/17/2018		35,000		(239	)
Bank of America NA	3-Month USD LIBOR	Receive	5.000		12/17/2018		21,900		(3	)
Morgan Stanley Capital Services, Inc.	3-Month USD LIBOR	Receive	5.000		12/17/2018		3,700		59
Lehman Brothers Special Financing	3-Month USD LIBOR	Receive	5.000		12/17/2028		5,600		13
Royal Bank of Scotland	3-Month USD LIBOR	Receive	5.000		12/17/2028		5,600		(6	)
Royal Bank of Scotland	3-Month USD LIBOR	Receive	5.000		12/17/2038		7,300		(69	)
Morgan Stanley Capital Services, Inc.	3-Month USD LIBOR	Receive	5.000		12/17/2038		9,600		(71	)
Citibank N.A.	3-Month USD LIBOR	Receive	5.000		12/17/2038		7,100		(13	)
Bank of America NA	3-Month USD LIBOR	Receive	5.000		12/17/2038		27,200		(390	)
Deutsche Bank AG	3-Month USD LIBOR	Receive	5.000		12/17/2038		59,100		—
Total Interest Rate Swaps								$	(2,430	)
Credit Default Swaps Counterparty	Reference Entity	Buy/Sell	Pay/Receive Fixed Rate		Expiration Date	Notional Amount (000s)		Appreciation/ (Depreciation) (000s)
Morgan Stanley Capital Services, Inc.	GMAC LLC 6.875% due 8/28/2012	Sell	1.050	%	09/20/2008	$	5,500	$	(78	)
Morgan Stanley Capital Services, Inc.	GMAC LLC 9.625% due 3/1/2013	Buy	0.970		11/20/2008		2,300		—
Credit Suisse Securities (USA) LLC	Gazprom Azprom SP FBF 8.625% due 4/28/2034	Sell	1.000		11/20/2008		1,000		—

15

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

SWAP AGREEMENTS—Continued

Credit Default Swaps Counterparty	Reference Entity	Buy/Sell	Pay/Receive Fixed Rate		Expiration Date	Notional Amount (000s)		Appreciation/ (Depreciation) (000s)
Royal Bank of Scotland	Indonesia SP 6.75% due 3/10/2014	Buy	0.390	%	12/20/2008	$	6,000	$	(6	)
Royal Bank of Scotland	Indonesia SP 6.75% due 3/10/2014	Buy	0.400		12/20/2008		9,000		(8	)
Royal Bank of Scotland	Deutsche Bank AG SP 5.5% due 5/18/2011	Sell	0.550		12/20/2008		20,100		23
Morgan Stanley Capital Services, Inc	Gazprom SP 01/30/08 MYC 8.625% due 4/28/2034	Sell	1.250		12/20/2008		5,400		8
Morgan Stanley Capital Services, Inc	GECC SP 6% due 6/15/2012	Sell	0.950		01/20/2009		2,600		1
Citibank N.A.	GECC SP 6% due 6/15/2012	Sell	0.750		03/20/2009		3,200		(3	)
Deutsche Bank AG	GECC SP 6% due 6/15/2012	Sell	1.100		03/20/2009		600		1
Bank of America NA	SLM CORP SP BOA 5.125% due 8/27/2012	Sell	4.550		03/20/2009		3,900		(23	)
HSBC Bank USA, N.A.	Russian Federation 7.650% due 06/11/2013	Sell	0.700		04/20/2009		1,300		(11	)
HSBC Bank USA, N.A.	United Mexican States 7.5% due 4/8/2033	Sell	0.180		05/20/2009		3,000		1
Barclays Bank PLC	SLM CORP SP 5.125% due 8/27/2012	Sell	5.100		06/20/2009		900		(3	)
Royal Bank of Scotland	GECC SP 6% due 6/15/2012	Sell	1.100		09/20/2009		800		2
Citibank N.A.	Lehman Bros SP 6.625% due 1/18/2012	Sell	8.250		09/20/2009		1,500		25
Merrill Lynch & Co., Inc.	GECC SP MEI 6% due 6/15/2012	Sell	1.080		12/20/2009		5,300		10
Citibank N.A.	GECC SP CBK 6% due 6/15/2012	Sell	1.150		03/20/2010		100		—
Barclays Bank PLC	GECC SP BRC 6% due 6/15/2012	Sell	0.770		06/20/2010		2,000		—
Barclays Bank PLC	GECC SP BRC 6% due 6/15/2012	Sell	0.935		12/20/2010		400		(1	)
BNP Paribas Bank	GECC SP BPS 6% due 6/15/2012	Sell	0.940		12/20/2010		1,500		(5	)
Deutsche Bank AG	GECC SP DUB 6% due 6/15/2012	Sell	0.950		12/20/2010		700		(2	)
Barclays Bank PLC	GECC SP BRC 6% due 6/15/2012	Sell	0.620		03/20/2011		5,700		(70	)
Chase Securities Inc.	Panama SP 8.875% due 9/30/2027	Sell	0.730		01/20/2012		3,000		(32	)
Morgan Stanley Capital Services, Inc.	Panama SP 8.875% due 9/30/2027	Sell	0.750		01/20/2012		1,000		(10	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Buy	0.355		06/20/2012		9,937		(313	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Buy	0.360		06/20/2012		4,968		(156	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Buy	0.401		06/20/2012		2,484		(75	)
Merrill Lynch & Co., Inc.	Dow Jones CDX N.A. HY-8 Index	Buy	1.833		06/20/2012		1,400		(100	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Buy	1.846		06/20/2012		1,000		(71	)
Merrill Lynch & Co., Inc.	Dow Jones CDX N.A. HY-8 Index	Sell	2.070		06/20/2012		1,400		(89	)
Morgan Stanley Capital Services, Inc.	Dow Jones CDX N.A. HY-8 Index	Buy	2.080		06/20/2012		1,000		(63	)
Merrill Lynch & Co., Inc.	Dow Jones CDX N.A. HY-8 Index	Buy	2.126		06/20/2012		600		(37	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Sell	2.144		06/20/2012		500		(30	)
Morgan Stanley Capital Services, Inc.	Dow Jones CDX N.A. HY-8 Index	Sell	2.170		06/20/2012		500		(30	)
Citibank N.A.	Dow Jones CDX N.A. HY-8 Index	Sell	2.179		06/20/2012		700		(42	)
Morgan Stanley Capital Services, Inc.	Russian Federation 7.5% due 3/31/2030	Sell	0.795		08/20/2012		5,600		(22	)
Barclays Capital, London	GMAC LLC 6.875% due 8/28/2012	Sell	3.650		09/20/2012		2,500		(820	)
Citibank N.A.	GMAC LLC 6.875% due 8/28/2012	Sell	3.720		09/20/2012		2,500		(816	)
Deutsche Bank AG	GMAC LLC 6.875% due 8/28/2012	Sell	4.000		09/20/2012		1,600		(513	)
Barclays Capital, London	Ford Motor Credit Company 7% due 10/1/2013	Sell	4.150		09/20/2012		2,500		(615	)

16

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

SWAP AGREEMENTS—Continued

Credit Default Swaps Counterparty	Reference Entity	Buy/Sell	Pay/Receive Fixed Rate		Expiration Date	Notional Amount (000s)		Appreciation/ (Depreciation) (000s)
Barclays Bank PLC	GMAC LLC 6.875% due 8/28/2012	Sell	4.800	%	09/20/2012	$	2,200	$	(671	)
Barclays Bank PLC	Ford Motor Credit Company 7% due 10/1/2013	Sell	5.650		09/20/2012		1,300		(274	)
Merrill Lynch & Co., Inc.	Dow Jones CDX N.A. HY-8 Index	Sell	5.800		09/20/2012		500		(104	)
Barclays Bank PLC	Ford Motor Credit Company 7.25% due 10/25/2011	Sell	6.150		09/20/2012		7,200		(1,432	)
Barclays Bank PLC	GECC SP BRC 6% due 6/15/2012	Sell	0.640		12/20/2012		5,600		(130	)
Deutsche Bank AG	Dow Jones CDX IG9 5Y 30-100% Index	Sell	0.705		12/20/2012		17,400		193
Morgan Stanley Capital Services, Inc.	Dow Jones CDX IG9 5Y 15-30% Index	Sell	0.963		12/20/2012		6,500		31
Deutsche Bank AG	General Motors Corporation 7.125% due 7/15/2013	Sell	4.500		12/20/2012		900		(345	)
Citibank N.A.	General Motors Corporation 7.125% due 7/15/2013	Sell	4.600		12/20/2012		900		(343	)
BNP Paribas Bank	General Motors Corporation 7.125% due 7/15/2013	Sell	4.800		12/20/2012		100		(38	)
Barclays Bank PLC	UBS AG Jersey Branch 4.814% due 4/18/2012	Sell	0.760		03/20/2013		20,470		(192	)
Barclays Bank PLC	GECC SP BRC 8.625% due 4/28/2034	Sell	2.180		02/20/2013		800		5
UBS Warburg AG	Gazprom SP 01/31/08 UAG 8.625% due 4/28/2034	Sell	2.180		02/20/2013		1,500		10
Barclays Bank PLC	FHLMC 5.08% due 2/7/2019	Sell	0.720		03/20/2013		6,100		76
Deutsche Bank AG	Berkshire Hathaway FIN 4.625% due 10/15/2013	Sell	0.850		03/20/2013		2,800		(16	)
Royal Bank of Scotland	AIG 6.25% due 5/1/2036	Sell	1.958		03/20/2013		7,000		(144	)
Lehman Brothers Special Financing	AIG 6.25% due 5/1/2036	Sell	2.056		03/20/2013		8,000		(134	)
Deutsche Bank AG	AIG 6.25% due 5/1/2036	Sell	2.070		03/20/2013		3,000		(49	)
Bank of America NA	SLM CORP 5.125% due 8/27/2012	Sell	4.800		03/20/2013		3,600		21
Citibank N.A.	SLM CORP 5.125% due 8/27/2012	Sell	4.850		03/20/2013		3,900		30
Bank of America NA	GM CORP 7.125% due 7/15/2013	Sell	8.950		03/20/2013		8,300		(2,352	)
Deutsche Bank AG	CDX IG10 5Y 30-100% SP DUB	Sell	0.530		06/20/2013		4,000		19
Barclays Bank PLC	CDX IG10 5Y BP BRC	Buy	1.550		06/20/2013		35,200		(16	)
Deutsche Bank AG	CDX IG10 5Y BP DUB	Buy	1.550		06/20/2013		243,900		(1,146	)
Morgan Stanley Capital Services, Inc.	CDX IG10 5Y BP MYC	Buy	1.550		06/20/2013		83,100		188
Credit Suisse Securities (USA) LLC	CDX IG10 5Y BP FBF	Buy	1.550		06/20/2013		14,900		(99	)
Deutsche Bank AG	CDX HY-10 100 BP DUB	Buy	5.000		06/20/2013		2,600		(22	)
Merrill Lynch & Co., Inc.	Russian Federation 5.000% due 03/31/2030	Sell	0.780		03/20/2016		1,100		(23	)
JP Morgan Chase	Russian Federation 5.000% due 03/31/2030	Sell	0.800		03/20/2016		1,100		(22	)
JP Morgan Chase	United Mexican States 5.000% due 03/31/2030	Sell	0.920		03/20/2016		300		(4	)
Chase Securities Inc.	Panama SP 8.875% due 9/30/2027	Sell	1.250		01/20/2017		500		(13	)
Credit Suisse Securities (USA) LLC	Panama SP 8.875% due 9/30/2027	Sell	1.200		02/20/2017		900		(27	)
Morgan Stanley Capital Services, Inc.	CMBX.NA.AAA.3	Sell	0.080		12/13/2049		23,800		1,272
Total Credit Default Swaps								$	(9,724	)
Total Swaps								$	(12,154	)

17

Harbor Bond Fund

PORTFOLIO OF INVESTMENTS—Continued

WRITTEN OPTIONS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Number of Shares/Contracts	Strike Price		Expiration Date	Value (000s)
Swap Option—Euro (Call)	7,200,000	$	0.75	Dec-08	$	56
Swap Option (Call)	1,295		117.00	Aug-08		243
Swap Option (Call)	132,600,000		4.30	Dec-08		1,495
Swap Option (Call)	55,100,000		4.30	Feb-09		782
Swap Option (Call)	27,900,000		4.60	Feb-09		546
Swap Option (Call)	16,000,000		4.20	Jul-09		212
Swap Option (Call)	10,600,000		4.15	Aug-09		131
Swap Option (Call)	34,500,000		4.40	Aug-09		580
Swap Option (Call)	49,700,000		4.55	Aug-09		1,004
Swap Option (Call)	59,700,000		4.25	Feb-16		677
U. S. Treasury Notes 10 Yr. Futures (Put)	1,149		111.00	Aug-08		72
U. S. Treasury Notes 10 Yr. Futures (Put)	146		113.00	Aug-08		37
Written options outstanding, at value (premiums received of $12,436)					$	5,835

FIXED INCOME INVESTMENTS SOLD SHORT AT JULY 31, 2008 ARE AS FOLLOWS:

Par Value (000s)	Security	Value (000s)
$343,200	United States Treasury Notes	$	346,275
	Fixed Income Investments Sold Short, at value (proceeds $345,395)

* Security in default.

1 Floating rate security. The stated rate represents the rate in effect at July 31, 2008.

2 At July 31, 2008, securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options. (See Note 1 to the Portfolio of Investments.) The securities pledged had an aggregate market value of $3,702,868 or 97% of net assets.

3 Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. These securities are priced by an independent pricing service selected by the adviser (Harbor Capital Advisors, Inc.), or using valuation procedures approved by the Board of Trustees. At July 31, 2008, these securities were valued at $276,191 or 7% of net assets.

4 REMICs are CMOs which can hold mortgages secured by any type of real property and issue multiple-class securities backed by those mortgages.

5 Variable rate security. The stated rate represents the rate in effect at July 31, 2008.

6 MTN after the name of a security stands for Medium Term Note.

7 TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after July 31, 2008. Although the unit price for the trades has been established, the principal value has not been finalized. However, the amount of the commitments will not fluctuate more than 2% from the principal amount. Income on TBAs is not earned until settlement date. (See Note 1 to the Portfolio of Investments).

AUD$ Australian Dollar.

R$ Brazilian Real.

£ British Pound.

€ Euro.

The accompanying notes are an integral part of the portfolio of investments.

18

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Total Investments (% of net assets)

(Excludes net cash and short-term investments of –55.4%)

ASSET-BACKED SECURITIES—5.2%
Principal Amount (000s)			Value (000s)
		American Express Credit
$	1,600	3.258%—03/15/20161,5	$	1,589
		BA Credit Card Trust
	1,000	3.158%—12/15/20141,5		988
		Chase Issuance Trust
	1,400	2.478%—03/15/20131,5		1,372
		CitiBank Omni
	1,000	3.597%—03/20/20132,5		1,000
	TOTAL ASSET-BACKED SECURITIES     (Cost $4,981)			4,949
COLLATERALIZED MORTGAGE OBLIGATIONS—0.9%
		Bear Stearns Adjustable Rate Mortgage Trust REMIC3
		Series 2005-2 Cl. A2
	54	4.125%—03/25/20351,5		52
		Pass Through Certificates Series 2005-5 Cl. A2
	54	4.550%—08/25/20351,5		52
				104
		Federal Home Loan Banks REMIC3
	330	5.500%—05/15/20161		335
		Federal Home Loan Mortgage Corp. REMIC3
	414	2.688%—02/15/20191,5		405
	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS     (Cost $849)			844
CORPORATE BONDS & NOTES—22.1%
		Allstate Life Global Funding Trusts
	600	3.328%—05/21/20101,5		592
	300	5.375%—04/30/20131		300
				892
		American Express Bank
	100	6.000%—09/13/20171		93
	140	7.000%—03/19/20181		139
				232
		American Honda Finance
	900	3.553%—06/20/20111,2,5		899
		Barclays Bank plc
	100	5.450%—09/12/20121		100
		BCAP LLC Trust
	157	2.653%—01/25/20371,5		94
		Bear Stearns Cos. Inc. MTN4
	100	6.950%—08/10/20121		103

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		Capital One Financial Corp.
$	100	6.750%—09/15/20171	$	97
		Caterpillar Financial Services Corp
	900	3.559%—06/24/20111,5		900
		Citigroup Funding Inc.
	500	3.820%—05/07/20101,5		494
	1,300	6.125%—05/15/20181		1,246
				1,740
		Credit Suisse USA Inc.
	1,300	2.543%—06/05/20091,5		1,281
	900	5.000%—05/15/20131		876
				2,157
		Ford Motor Auto Owner Trust
		Series 2008-C Cl. A2B
	800	3.371%—01/15/20111,5		802
	100	7.800%—06/01/20121		75
				877
		GATX Financial Corp.
	1,000	5.800%—03/01/20161		971
		General Electric Capital Corp.
	100	5.500%—09/15/20671,2		140
		Goldman Sachs Group Inc.
	100	6.150%—04/01/20181		97
		HBOS PLC
	300	6.750%—05/21/20181,2		271
		Hewlett-Packard Co.
	700	2.792%—03/01/20121,5		691
		HSBC Bank
	700	7.000%—01/15/20391		692
		John Deere Capital Corp.
	1,400	3.441%—06/10/20111,5		1,402
		Lehman Brothers Holdings Inc.
	100	6.875%—05/02/20181		94
		Merrill Lynch & Co. Inc.
	1,300	2.937%—09/09/20091,5		1,263
	500	6.875%—04/25/20181		469
				1,732
		Metropolitan Life Global Funding
	700	3.554%—06/25/20101,2,5		700
	100	5.125%—04/10/20131,2		99
				799
		Morgan Stanley
	1,000	4.778%—05/14/20101,5		993
	200	6.625%—04/01/20181		185
				1,178
		National Rural Utility Corp.
	1,000	3.576%—07/01/20101,5		1,000
		New York Life Global Funding
	200	4.650%—05/09/20131,2		198
		Pricoa Global Funding
	1,800	3.473%—06/04/20101,2,5		1,801
	500	2.999%—01/30/20121,2,5		481
				2,282
		UBS AG
	300	5.750%—04/25/20181		286

19

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—Continued

CORPORATE BONDS & NOTES—Continued
Principal Amount (000s)			Value (000s)
		Wachovia Corp.
$	500	5.500%—05/01/20131,5	$	462
		Wal-Mart Stores Inc.
	100	5.800%—02/15/20181		104
		Washington St
	500	5.000%—01/01/20261		511
		Wells Fargo & Co.
	100	4.375%—01/31/20131		95
	TOTAL CORPORATE BONDS & NOTES     (Cost $21,368)			21,096
MORTGAGE PASS-THROUGH—33.6%
		Citigroup Mortgage Loan Trust Inc.
	651	3.283%—08/25/20351,2,5		567
		Federal Home Loan Mortgage Corp.
	2,098	5.500%—01/01/2037-04/01/20381		2,054
	2,000	6.000%—03/01/20381		2,013
				4,067
		Federal Home Loan Mortgage Corp. TBA6
		May Delivery
	2,400	5.500%—12/01/2099		2,428
		Federal National Mortgage Association
	14,893	5.500%—12/01/2036-04/01/20381		14,600
	300	5.500%—06/01/20381		294
	3,129	6.000%—04/01/2021-05/01/20381		3,157
				18,051
		Federal National Mortgage Association TBA6
		August Delivery
	4,300	5.000%—12/01/2099		4,083
	900	6.000%—12/01/2099		904
				4,987
		Government National Mortgage Association TBA6
		August Delivery
	500	5.500%—12/01/2099		504
	1,000	6.000%—12/01/2099		1,008
				1,512
		Residential Accredit Loans Inc.
	229	2.663%—06/25/20461,5		143
		Residential Asset Securitization Trust
	148	2.883%—01/25/20461,5		104
		Structured Asset Mortgage Investments
	125	2.695%—05/25/20461,5		79
		WAMU Mortgage Pass Through Cert.
	126	4.046%—09/25/20331,5		121
	TOTAL MORTGAGE PASS-THROUGH     (Cost $32,088)			32,059

U.S. GOVERNMENT OBLIGATIONS—93.6%
Principal Amount (000s)			Value (000s)
		U.S. Treasury Bonds
$	310	1.750%—01/15/20281,7	$	290
	927	2.000%—07/15/20147		967
	2,401	2.000%—01/15/20261,7		2,352
	4,136	2.375%—01/15/20251,7		4,307
	3,759	2.375%—01/15/20271,7		3,884
	2,276	3.625%—04/15/20281,7		2,796
	11,499	3.875%—04/15/20297		14,704
				29,300
		U.S. Treasury Notes
	6,148	0.625%—04/15/20131		6,009
	5,530	0.875%—04/15/20101,7		5,562
	1,400	1.375%—07/15/20181		1,363
	7,309	1.875%—07/15/2013-07/15/20157		7,551
	754	2.000%—04/15/2012		782
	1,066	2.000%—01/15/20141,7		1,109
	546	2.000%—01/15/20161,7		564
	4,587	2.375%—04/15/20111		4,777
	859	2.375%—01/15/20171,7		912
	649	2.500%—07/15/20167		696
	7,314	2.625%—07/15/20171,7		7,933
	18,225	3.000%—07/15/20127		19,675
	2,134	3.500%—01/15/20117		2,285
	837	4.250%—01/15/20101,7		886
				60,104
	TOTAL U.S. GOVERNMENT OBLIGATIONS     (Cost $89,309)			89,404
PURCHASED OPTIONS—0.0%
No. of Contracts (000s)
		Currency Options
	15,000	Expire 08/18/2008		14
	25,000	Expire 08/21/2008		5
	3	Expire 08/22/2008		—
	200	Expire 07/08/2010		19
				38
		U.S. Treasury Options on Futures
	41	Expire 08/22/2008		—	a
	TOTAL PURCHASED OPTIONS     (Cost $14)			38
SHORT-TERM INVESTMENTS—7.7%
Principal Amount (000s)
	COMMERCIAL PAPER
$	1,600	Citibank Omni1		1,597
	900	Istituto Bancario SA1		900
	1,500	UBS AG1		1,500
	1,200	UnCredito Italiano New York1		1,200
				5,197

20

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—Continued

SHORT-TERM INVESTMENTS—Continued
Principal Amount (000s)			Value (000s)
	REPURCHASE AGREEMENTS
$	1,100	Repurchase Agreement with Credit Suisse First Boston July 31, 2008 due August 1, 2008 at 2.05% collateralized by U.S. Treasury Notes (market value $1,100)1	$	1,100
	1,050	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.200% collateralized by Federal Home Loan Mortgage Corp. (market value $1,075)		1,050
				2,150
	TOTAL SHORT-TERM INVESTMENTS     (Cost $7,347)			7,347
	TOTAL INVESTMENTS—163.1%     (Cost $155,956)			155,737
	CASH AND OTHER ASSETS, LESS LIABILITIES—(63.1)%			(60,264	)
	TOTAL NET ASSETS—100.0%		$	95,473

FUTURES CONTRACTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Number of Contracts	Aggregate Face Value (000s)		Expiration Date	Unrealized Appreciation/ (Depreciation) (000s)
Euribor Futures (Buy)	5	$	1,250	Mar-09	$	(31	)
Euribor Futures (Buy)	15		3,750	Jun-09		(83	)
Euribor Futures (Buy)	15		3,750	Sep-09		(72	)
Euribor Futures (Buy)	15		3,750	Dec-09		(65	)
Euro CME (Buy)	36		9,000	Sep-09		(30	)
Eurodollar Futures (Buy)	3		750	Mar-09		(3	)
Eurodollar Futures (Buy)	31		7,750	Jun-09		(17	)
Eurodollar Futures (Buy)	36		9,000	Dec-09		(44	)
Eurodollar Futures (Buy)	11		2,750	Mar-10		(6	)
Germany Fed Rep 10 Yr Bond (Buy)	21		2,100	Aug-08		—
Germany Fed Rep 10 Yr Bond (Sell)	14		1,400	Sep-08		(6	)
Japan Govt 10 Yr Bond (Sell)	1		100,000	Sep-08		(28	)
U.K. Treasury Bonds (Sell)	4		400	Sep-08		(12	)
U.S. Treasury Notes 10 Yr. Futures (Buy)	3		300	Sep-08		4
					$	(393	)

FORWARD CURRENCY CONTRACTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Currency	Market Value (000s)		Aggregate Face Value (000s)		Delivery Date	Unrealized Appreciation/ (Depreciation) (000s)
Brazilian Real (Buy)	$	825	$	783	Dec-08	$	42
Brazilian Real (Sell)		86		80	Dec-08		(7	)
Euro Currency (Sell)		369		376	Aug-08		7
Japanese Yen (Buy)		58		58	Dec-08		—
Malaysian Ringgit (Buy)		329		333	Nov-08		(5	)
Malaysian Ringgit (Buy)		405		412	Feb-09		(7	)
Mexican Peso (Buy)		146		140	Nov-08		5
Philippine Peso (Buy)		353		382	Aug-08		(29	)
Philippine Peso (Buy)		191		192	Nov-08		(1	)
Philippine Peso (Sell)		192		192	Aug-08		—
Polish Zloty (Buy)		123		115	May-09		8
Pound Sterling (Sell)		770		768	Aug-08		(2	)
Russian Ruble-New (Buy)		192		183	Nov-08		9
Russian Ruble-New (Buy)		40		39	May-09		1
Singapore Dollar (Buy)		979		974	Nov-08		3
South Korean Won (Buy)		36		38	Aug-08		(2	)

21

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—Continued

FORWARD CURRENCY CONTRACTS—Continued

Currency	Market Value (000s)		Aggregate Face Value (000s)		Delivery Date	Unrealized Appreciation/ (Depreciation) (000s)
South Korean Won (Sell)	$	36	$	35	Aug-08	$	(1	)
Yuan Renminbi (Buy)		179		169	Mar-09		11
Yuan Renminbi (Buy)		261		262	Jul-09		(1	)
Yuan Renminbi (Sell)		179		171	Mar-09		(9	)
						$	22

TBA COMMITMENTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Principal Amount (000s)		Coupon Rate		Delivery Date	Value (000s)
Federal Home Loan Mortgage Corporation (proceeds receivable $4,766)	$	4,800	5.500	%	Aug-38	$	4,766
Federal National Mortgage Association (proceeds receivable $513)		500	6.000	%	Aug-23		511
Federal National Mortgage Association (proceeds receivable $2,640)		2,700	5.500	%	Aug-38		2,642
Government National Mortgage Associate (proceeds receivable $1,004)		1,000	5.500	%	Aug-38		999
						$	8,918

SWAP AGREEMENTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS :

Interest Rate Swaps Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date	Notional Amount (000s)		Unrealized Appreciation/ (Depreciation) (000s)
Morgan Stanley Capital Services, Inc.	6-Month AUD-Bank Bill Short Term	Pay	7.000	%	12/15/2009	AUD$	800	$	(3	)
Deutsche Bank AG	6-Month AUD-Bank Bill Short Term	Pay	6.500		01/15/2010		300		(4	)
Citibank N.A.	6-Month AUD-Bank Bill Short Term	Pay	6.500		01/15/2010		100		(1	)
UBS Warburg AG	3-Month AUD-Bank Bill Short Term	Pay	7.500		03/15/2010		15,700		45
Deutsche Bank AG	6-Month AUD-Bank Bill Short Term	Pay	7.000		06/15/2010		1,000		(7	)
Morgan Stanley Capital Services, Inc.	6-Month AUD-Bank Bill Short Term	Receive	6.750		12/15/2017		100		3
UBS Warburg AG	6-Month AUD-Bank Bill Short Term	Receive	7.000		03/15/2019		1,100		5
Morgan Stanley Capital Services, Inc.	3-Month BRL-Banco Central do Brazil	Pay	10.115		01/02/2012	R$	100		(5	)
Barclays Capital, London	Business Day-CDI	Pay	10.680		01/02/2012		1,000		(41	)
Barclays Capital	INF GBP R 3.25/UKRPI 12/14/17 BRC	Pay	12.540		01/02/2012		400		(6	)
HSBC Bank USA, N.A.	Brazil Cetip Interbank Deposit	Pay	14.765		01/02/2012		500		—
Morgan Stanley Capital Services, Inc	IRS GBP R 6ML/5.0 12/19/08 MYC	Pay	5.000		12/19/2009	£	2,000		(12	)
Deutsche Bank AG	6-Month GBP-LIBOR	Pay	6.000		03/20/2010		1,000		(5	)
Credit Suisse International	6-Month GBP-LIBOR	Pay	5.000		09/15/2010		200		1
Royal Bank of Scotland	6-Month GBP-LIBOR	Pay	5.000		09/15/2010		100		1
Deutsche Bank AG	6-Month GBP BBA-LIBOR	Pay	5.000		03/20/2013		1,500		(76	)
Royal Bank of Scotland	INF GBP R 3.1825/UKRPI 12/19/17 RYL	Pay	3.250		12/14/2017		100		(8	)
Royal Bank of Scotland	INF GBP R 3.1825/UKRPI 12/19/07 RYL	Pay	3.183		12/19/2017		200		(20	)
Credit Suisse International	6-Month GBP-LIBOR	Receive	4.000		12/15/2035		100		1
Barclays Capital	6-Month GBP-LIBOR	Receive	5.000		03/18/2039		100		(5	)
Deutsche Bank AG	6-Month EUR-EURIBOR	Pay	4.500		03/19/2010	€	300		(3	)
Morgan Stanley Capital Services, Inc	IRS EUR R 6ME/4.5 03/19/08 MYC	Pay	4.500		03/19/2010		300		(3	)
JP Morgan Chase	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	2.261		07/14/2011		400		(2	)
BNP Paribas	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	1.987		12/15/2011		100		(3	)
Barclays Capital, London	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	1.947		03/15/2012		200		(8	)
Royal Bank of Scotland	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	1.955		03/28/2012		100		(4	)

22

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—Continued

SWAP AGREEMENTS—Continued

Interest Rate Swaps Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate		Expiration Date	Notional Amount (000s)		Unrealized Appreciation/ (Depreciation) (000s)
Barclays Capital, London	5-Year French CPI Ex Tobacco Daily Reference Index	Pay	2.070	%	09/14/2012	€	200	$	(7	)
Morgan Stanley Capital Services, Inc.	6-Month JPY-LIBOR	Pay	1.030		03/18/2009	¥	100,000		3
UBS Warburg AG	6-Month JPY-LIBOR	Pay	1.500		06/17/2013		110,000		10
Citibank N.A	28-Day Mexican-TIIE-Banxico	Pay	8.170		11/04/2016	MEX$	2,000		(14	)
Merrill Lynch & Co, Inc.	28-Day Mexican-TIIE-Banxico	Pay	8.170		11/04/2016		700		(5	)
Bank of America NA	3-Month USD LIBOR	Receive	5.000		12/17/2018	$	700		(8	)
Lehman Brothers Special Financing Inc	3-Month USD LIBOR	Receive	5.000		12/17/2023		1,200		5
Royal Bank of Scotland	3-Month USD LIBOR	Receive	5.000		12/17/2023		100		1
Royal Bank of Scotland	6-Month GBP-LIBOR	Receive	5.000		12/17/2038		3,600		(8	)
Total Interest Rate Swaps								$	(183	)
Credit Default Swaps Counterparty	Reference Entity	Buy/Sell	Pay/Receive Fixed Rate		Expiration Date	Notional Amount (000s)		Appreciation/ (Depreciation) (000s)
Deutsche Bank AG	GMAC LLC 6.875% due 8/28/2012	Buy	5.150	%	09/20/2008	$	100	$	1
Merrill Lynch International	Dow Jones CDX HY-9 100 25-35% Index	Sell	2.750		06/20/2012		99		(4	)
Bear Sterns International, Ltd	Capital One BP BTI 5.8% due 3/1/2016	Buy	1.210		09/20/2012		100		10
Deutsche Bank AG	GMAC LLC 6.875% due 8/28/2012	Sell	5.400		09/20/2012		100		(29	)
Merrill Lynch International	GMAC LLC 6.875% due 8/28/2012	Sell	6.300		09/20/2012		100		(28	)
BNP Paribas	The Goldman Sachs Group 6.6% due 1/15/2012	Buy	0.390		12/20/2012		100		3
Morgan Stanley Capital Services, Inc.	Dow Jones CDX IG-9 Index	Buy	0.600		12/20/2012		200		7
Lehman Brothers Special Financing Inc	Dow Jones CDX.HY-9 100 Index	Sell	3.330		12/20/2012		100		(7	)
Merrill Lynch International	Dow Jones CDX HY-9 100 25-35% Index	Sell	6.510		12/20/2012		200		10
Morgan Stanley Capital Services, Inc.	Dow Jones CDX HY-9 100 25-35% Index	Sell	6.570		12/20/2012		200		11
Merrill Lynch International	Dow Jones CDX HY-9 100 25-35% Index	Sell	6.690		12/20/2012		100		6
Morgan Stanley Capital Services, Inc.	CDX IG10 5Y BP MYC	Buy	1.550		06/20/2013		1,900		(10	)
Deutsche Bank AG	CDX IG10 5Y BP DUB	Buy	1.550		06/20/2013		10,900		(17	)
Citibank N.A	GATX FIN BP CBK 6.25% due 11/15/2013	Buy	1.070		03/20/2016		1,000		12
Barclays Capital	Dow Jones CDX IG9 10Y BP BRC Index	Buy	0.800		12/20/2017		700		17
UBS AG	Citigroup Inc BP UAG 6.125% due on 5/15/2018	Buy	0.850		06/20/2018		100		4
BNP Paribas Bank	Citigroup Inc BP BPS 6.125% due on 5/15/2018	Buy	0.900		06/20/2018		100		3
Total Credit Default Swaps								$	(11	)
Total Swaps								$	(194	)

WRITTEN OPTIONS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Number of Shares/Contracts	Strike Price		Expiration Date	Value (000s)
Swap Option (Call)	200,000	$	5.67	Aug-08	$	19
Swap Option (Put)	200,000		5.67	Aug-08		—
U. S. Treasury Bonds Futures (Call)	10		117.00	Aug-08		5
U. S. Treasury Bonds Futures (Call)	7		119.00	Aug-08		1
U. S. Treasury Bonds Futures (Call)	7		120.00	Aug-08		1
U. S. Treasury Bonds Futures (Put)	3		109.00	Aug-08		1
U. S. Treasury Notes 10 Yr. Futures (Call)	36		116.00	Aug-08		15
U. S. Treasury Notes 10 Yr. Futures (Put)	14		111.00	Aug-08		1
U. S. Treasury Notes 10 Yr. Futures (Put)	16		112.00	Aug-08		2
Written options outstanding, at value (premiums received of $94)					$	45

23

Harbor Real Return Fund

PORTFOLIO OF INVESTMENTS—Continued

FIXED INCOME INVESTMENTS SOLD SHORT AT JULY 31, 2008 ARE AS FOLLOWS:

Par Value (000s)	Security	Value (000s)
$8,590	United States Treasury Notes	$	8,500
	Fixed Income Investments Sold Short, at value (proceeds $8,467)

1 At July 31, 2008, securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options. (See Note 1 to the Portfolio of Investments.) The securities pledged had an aggregate market value of $98,062 or 103% of net assets.

2 Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. These securities are priced by an independent pricing service selected by the adviser (Harbor Capital Advisors, Inc.), or using valuation procedures approved by the Board of Trustees. At July 31, 2008, these securities were valued at $6,156 or 6% of net assets.

3 REMICs are CMOs which can hold mortgages secured by any type of real property and issue multiple-class securities backed by those mortgages.

4 MTN after the name of a security stands for Medium Term Note.

5 Floating rate security. The stated rate represents the rate in effect at July 31, 2008.

6 TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after July 31, 2008. Although the unit price for the trades has been established, the principal value has not been finalized. However, the amount of the commitments will not fluctuate more than 2% from the principal amount. Income on TBAs is not earned until settlement date. (See Note 1 to the Portfolio of Investments).

7 Treasury inflation-protected securities (TIPS) are securities in which the principal amount is adjusted for inflation and interest payments are applied to the inflation-adjusted principal.

a Rounds to less than $1,000.

AUD$ Australian Dollar.

R$ Brazilian Real.

£ British Pound.

€ Euro.

¥ Japanese Yen.

MEX$ Mexican Peso.

The accompanying notes are an integral part of the portfolio of investments.

24

Harbor Short Duration Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Total Investments (% of net assets)

(Excludes net cash and short-term investments of 5.2%)

ASSET-BACKED SECURITIES—24.4%
Principal Amount (000s)				Value (000s)
			Ameriquest Mortgage Securities Inc.
			Series 2006-R1 Cl. M1
$	1,000		2.873%—03/25/20361,2	$	618
			Series 2005-R1 Cl. M1
	1,000		2.933%—03/25/20351,2		846
					1,464
			Chase Issuance
	1,370		2.908%—01/15/20122		1,366
			Contimortgage Home Equity Trust
			Series 1996-4 Cl. A10
	1,067		2.951%—01/15/20281,2		960
			Countrywide Asset-Backed Certificates
			Series 2005-4 Cl. MV1
	1,000		2.943%—10/25/20352		850
			Federal National Mortgage Association
			Series 2002-W2 Cl. AF5
	872		6.000%—06/25/20321,3		800
			HSI Asset Securitization Corp Trust
			Series 2006-OPT2 Cl. M1
	1,000		2.853%—01/25/20361,2		500
			Illinois Power Special Purpose Trust
	—	a	5.650%—12/25/2010		—	a
			Long Beach Mortgage Loan Trust
			Series 2006-WL1 Cl. 2A2
	1,148		2.663%—01/25/20361,2		1,125
			Massachusetts RRB Special Purpose Trust
			Series 2005-1 Cl. A2
	154		3.780%—09/15/20101		154
			MBNA Credit Card Master Note Trust
			Series 2006-A1 Cl. A
	1,612		4.900%—07/15/2011		1,626
			Peco Energy Transition Trust
			Series 2000-A Cl. A3
	1,161		7.625%—03/01/2010		1,187
			Residential Asset Mortgage Products Inc.
			Series 2003-RS4 Cl. AIIB
	592		3.143%—05/25/20332		532
			Residential Asset Securities Corp.
			Series 2005-KS2 Cl. M1
	1,000		2.913%—03/25/20351,2		800
			Series 2005-KS10 Cl. M2
	1,000		2.923%—11/25/20351,2		660
			Series 2005-KS1 Cl. M1
	1,000		2.933%—02/25/20351,2		826
			Series 2001-KS2 Cl. AII
	622		2.943%—06/25/20312		562
			Series 2004-KS4 Cl. A2B3
	1,179		3.243%—05/25/20341,2		1,061
					3,909

ASSET-BACKED SECURITIES—Continued
Principal Amount (000s)			Value (000s)
		Residential Funding Mortgage Securities II Inc.
		Series 2003-HS2 Cl. AIIB
$	236	2.733%—06/25/20281,2	$	118
		SLM Student Loan Trust
	1,277	2.816%—06/15/20182		1,267
		Specialty Underwriting & Residential Finance
		Series 2004-BC4 Cl. M1
	965	3.283%—10/25/20351,2		789
		USAA Auto Owner Trust
	555	3.580%—03/15/2011		554
		Wells Fargo Home Equity Trust
		Series 2005-4 Cl. AI3
	1,000	2.863%—12/25/20351,2,4		899
	TOTAL ASSET-BACKED SECURITIES     (Cost $20,805)			18,100
COLLATERALIZED MORTGAGE OBLIGATIONS—42.8%
		Banc of America Mortgage Securities Inc. Pass Through Certificates
		Series 2004-F Cl. 2A5
	2,000	4.144%—06/25/20341,2		1,952
		Citicorp Mortgage Securities Inc. REMIC5 Pass Through Certificates
		Series 2004-5 Cl. 1A29
	1,773	4.750%—08/25/2034		1,649
		Federal Home Loan Banks
	1,374	4.750%—10/25/2010		1,386
		Federal Home Loan Mortgage Corp. REMIC5
	1,467	2.871%—07/15/20232		1,437
	1,349	3.021%—02/15/20252		1,342
	1,520	4.375%—04/15/20151		1,515
				4,294
		Federal Home Loan Mortgage Corp. STRIPS6
	1,506	2.721%—08/15/20362		1,480
		Federal National Mortgage Association
	7,200	3.250%—02/10/2010		7,229
	2,683	5.146%—10/01/20351,2		2,747
				9,976
		Federal National Mortgage Association REMIC5
		Series 2003-38 Cl. FA
	1,786	2.853%—03/25/20231,2		1,770
		Series 1997-68 Cl. FC
	773	3.000%—05/18/20272		771
	793	3.900%—01/25/20232		805
				3,346
		First Horizon Alternative Mortgage Securities
		Series 2006-FA6 Cl. IIA1
	1,050	6.250%—11/25/2036		1,031
		Government National Mortgage Association REMIC5
	845	3.021%—10/16/20292		843
		Mound Financing plc
	1,000	3.338%—02/08/20422,4		991
		Residential Accredit Loans Inc. Series 2006-QS7 Cl. A1
	855	6.000%—06/25/2036		755

25

Harbor Short Duration Fund

PORTFOLIO OF INVESTMENTS—Continued

COLLATERALIZED MORTGAGE OBLIGATIONS—Continued
Principal Amount (000s)			Value (000s)
		Structured Adjustable Rate Mortgage Loan Trust Series 2004-20 Cl. 1A1
$	945	6.179%—01/25/20351,7	$	856
		Structured Asset Securities Corp. Series 2002-1A Cl. 2A1
	555	5.649%—02/25/20321,2		527
		Washington Mutual Mortgage
		Pass Through Certificates Series 2004-AR4 Cl. A6
	2,000	3.800%—06/25/20341,7		1,966
		Pass Through Certificates Series 2006-AR13 Cl. 1A
	704	4.408%—10/25/20461,2		620
				2,586
	TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS     (Cost $31,987)			31,672
U.S. GOVERNMENT OBLIGATIONS—27.6%
		U.S. Treasury Notes
	6,000	2.000%—02/28/2010		5,968
	7,500	4.250%—01/15/20111		7,794
	6,500	4.875%—05/15/20091		6,638
	TOTAL U.S. GOVERNMENT OBLIGATIONS     (Cost $20,207)			20,400

SHORT-TERM INVESTMENTS—4.6%
Principal Amount (000s)			Value (000s)
	COMMERCIAL PAPER
$	2,000	Societe Generale North America Inc.	$	1,999
	REPURCHASE AGREEMENTS
	1,424	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.100% collateralized by US Treasury Bills (market value $1,455)		1,425
	TOTAL SHORT-TERM INVESTMENTS     (Cost $3,424)			3,424
	TOTAL INVESTMENTS—99.4%     (Cost $76,423)			73,596
	CASH AND OTHER ASSETS, LESS LIABILITIES—0.6%			451
	TOTAL NET ASSETS—100.0%		$	74,047

FUTURES CONTRACTS OPEN AT JULY 31, 2008 ARE AS FOLLOWS:

Description	Number of Contracts	Aggregate Face Value (000s)		Expiration Date	Unrealized Appreciation/ (Depreciation) (000s)
U.S. Treasury Notes 2 Yr. Futures (Buy)	62	$	12,400	Sep-08	$	81

1 At July 31, 2008, securities held by the Fund were pledged to cover margin requirements for open future contracts, written options on futures contracts and swap options. (See Note 1 to the Portfolio of Investments.) The securities pledged had an aggregate market value of $36,541 or 49% of net assets.

2 Floating rate security. The stated rate represents the rate in effect at July 31, 2008.

3 Step coupon security.

4 Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. These securities are priced by an independent pricing service selected by the adviser (Harbor Capital Advisors, Inc.), or using valuation procedures approved by the Board of Trustees. At July 31, 2008, these securities were valued at $1,890 or 3% of net assets.

5 REMICs are CMOs which can hold mortgages secured by any type of real property and issue multiple-class securities backed by those mortgages.

6 Separate trading of registered interest and principal of securities (STRIPS) is a prestripped zero-coupon bond that is a direct obligation of the U.S. Treasury.

7 Variable rate security. The stated rate represents the rate in effect at July 31, 2008.

a Rounds to less than $1,000.

The accompanying notes are an integral part of the portfolio of investments.

26

Harbor Money Market Fund

PORTFOLIO OF INVESTMENTS—July 31, 2008 (Unaudited)

Total Investments (% of net assets)

(Excludes net cash of –0.2%)

BANK OBLIGATIONS—3.2%
Principal Amount (000s)			Value (000s)
		Barclays Bank plc
$	2,500	3.070%—01/12/2009	$	2,500
		Chase Bank
	3,000	2.300%—08/15/2008		3,000
		Toronto-Dominion Bank
	2,000	3.030%—01/09/2009		2,000
	TOTAL BANK OBLIGATIONS     (Cost $7,500)			7,500
COMMERCIAL PAPER—80.8%
		Abbey National North America LLC
	1,000	2.280%—08/06/2008		1,000
	4,900	2.300%—08/21/2008		4,894
	3,500	2.780%—11/12/2008		3,472
				9,366
		ANZ National International Ltd
	2,000	2.700%—10/03/2008		1,991
	5,000	2.950%—10/22/2008		4,966
				6,957
		Bank of America Corp.
	1,500	2.550%—09/19/2008		1,495
	5,100	2.580%—08/05/2008		5,099
	5,300	2.600%—10/06/2008		5,275
				11,869
		Bank of Montreal
	3,000	2.520%—08/01/2008		3,000
		Bank of Scotland plc
	3,200	2.690%—08/05/2008		3,199
	2,500	2.700%—09/17/2008		2,491
	1,300	2.720%—08/06/2008		1,300
	3,700	2.900%—11/10/2008		3,670
				10,660
		Barclays U.S. Funding Corp
	2,475	2.600%—09/02/2008-09/04/2008		2,469
	1,200	2.750%—09/26/2008		1,195
				3,664
		CBA Delaware Finance Inc.
	2,800	2.600%—09/08/2008-09/10/2008		2,792
	1,500	2.670%—08/05/2008		1,500
	4,000	2.720%—10/15/2008		3,977
				8,269
		Danske Corp.
	3,700	2.450%—08/11/2008		3,697
	1,500	2.510%—08/11/2008		1,499
	6,774	2.700%—10/07/2008		6,740
				11,936

COMMERCIAL PAPER—Continued
Principal Amount (000s)			Value (000s)
		Dexia Delaware LLC
$	2,000	2.610%—08/21/2008	$	1,997
	1,700	2.620%—08/19/2008		1,698
	1,500	2.630%—09/02/2008		1,496
	3,000	2.780%—10/09/2008		2,984
	3,700	2.790%—10/06/2008-10/14/2008		3,680
				11,855
		General Electric Capital Corp.
	10,900	2.400%—08/01/2008		10,900
		ING U.S. Funding LLC
	2,000	2.370%—08/04/2008		2,000
	1,000	2.570%—09/23/2008		996
	1,000	2.600%—09/17/2008		997
	3,500	2.680%—10/24/2008		3,478
	3,500	2.810%—08/27/2008		3,493
				10,964
		J.P. Morgan Chase
	8,000	2.500%—08/12/2008		7,994
		Lloyds Bank plc
	1,500	2.350%—08/04/2008		1,500
	4,000	2.600%—08/18/2008		3,995
				5,495
		Royal Bank of Canada
	4,000	2.500%—08/27/2008		3,993
		Societe Generale North America Inc.
	7,000	2.550%—08/06/2008		6,997
	2,800	2.570%—09/18/2008		2,790
	2,000	2.600%—09/10/2008		1,994
				11,781
		Svenska Handlsbn Ab
	12,000	2.550%—08/11/2008		11,991
		Toronto-Dominion Bank
	4,000	2.600%—08/27/2008		4,000
	5,700	2.900%—08/29/2008		5,700
				9,700
		UBS Finance
	3,400	2.790%—10/14/2008		3,381
	2,900	2.800%—10/27/2008		2,880
	4,000	2.990%—10/20/2008		3,973
	1,400	3.010%—10/24/2008		1,390
				11,624
		Wells Fargo & Co.
	11,600	2.380%—08/04/2008-08/07/2008		11,596
		Westpac Banking Corp.
	1,500	2.400%—08/06/2008		1,500
	2,550	2.570%—08/06/2008		2,549
	5,900	2.640%—09/18/2008		5,879
				9,928
		Westpac Trust Securities NZ Ltd
	2,000	2.600%—09/18/2008		1,993
	TOTAL COMMERCIAL PAPER     (Cost $185,535)			185,535

27

Harbor Money Market Fund

PORTFOLIO OF INVESTMENTS—Continued

REPURCHASE AGREEMENTS—0.1%
	(Cost $206)
Principal Amount (000s)			Value (000s)
$	206	Repurchase Agreement with State Street Corp. dated July 31, 2008 due August 1, 2008 at 1.100% collateralized by U.S. Treasury Bills (market value $214)	$	206
U.S. GOVERNMENT AGENCIES—16.1%
		Federal Home Loan Mortgage
	8,000	2.080%—10/14/2008		7,966
	11,538	2.180%—08/22/2008		11,523
	1,000	2.270%—08/20/2008		999
				20,488
		Federal National Mortgage Association
	16,500	2.250%—09/10/2008		16,459
	TOTAL U.S. GOVERNMENT AGENCIES     (Cost $36,947)			36,947
	TOTAL INVESTMENTS—100.2%     (Cost $230,188)a			230,188
	CASH AND OTHER ASSETS, LESS LIABILITIES—(0.2)%			(514	)
	TOTAL NET ASSETS—100.0%		$	229,674

a The aggregate identified cost on a tax basis is the same.

The accompanying notes are an integral part of the portfolio of investments.

28

Harbor Funds—Fixed Income Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—July 31, 2008 (Unaudited)

(Currency in thousands)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES

Security Valuation

Except for Harbor Money Market Fund, debt securities, other than short-term securities with a remaining maturity of less than 60 days, are valued at prices furnished by a pricing service selected by Harbor Capital Advisors, Inc. (the “Adviser”). The pricing service determines valuations for institutional-size trading units of such debt securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Short-term securities with a remaining maturity of less than 60 days are stated at amortized cost which approximates value.

When reliable market quotations are not readily available or when market quotations do not accurately reflect fair value, securities are priced at their fair value, calculated according to procedures adopted by the Board of Trustees, which may include utilizing an independent pricing service. A Fund may use fair value pricing if the value of some or all of the Fund’s securities have been materially affected by events occurring before the Fund’s pricing time but after the close of the primary markets or exchanges on which the security is traded. This most commonly occurs with foreign securities, but may occur with other securities as well. When fair value pricing is employed, the prices of securities used by a Fund to calculate its net asset value may differ from market quotations or official closing prices for the same securities which means the Fund may value those securities higher or lower than another fund that uses market quotations or official closing prices.

Securities of Harbor Money Market Fund are valued utilizing the amortized cost method as set forth in Rule 2a-7 under the Investment Company Act of 1940, as amended, and the Fund’s Rule 2a-7 procedures.

Futures Contracts

To seek to increase total return or hedge against changes in interest rates, securities prices or currency exchange rates, each Fund (except Harbor Money Market Fund) may purchase and sell various kinds of futures contracts, and purchase and write call and put options on these futures contracts. Harbor High-Yield Bond Fund is not authorized to enter into currency futures contracts and options on such contracts. Futures contracts tend to increase or decrease the Fund’s exposure to the underlying instrument or hedge other Fund investments. Losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the contracts’ terms. The maximum potential loss on a long futures contract is the U.S. dollar value of the notional amount at the time the contract is opened. The potential loss on a short futures contract is unlimited. Open futures contracts are valued based on the official daily closing price of futures contracts set by the exchange for the purpose of settling margin accounts, which is referred to as the settlement price. See the “Portfolio of Investments” for each Fund for open futures contracts held as of July 31, 2008.

A futures contract is an agreement between two parties to buy and sell a security at a set price on a future date. Upon entering into such a contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities or other liquid securities equal to the minimum “initial margin” requirements of the exchange. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as “variation margin,” and are recorded by the Fund as unrealized gains or losses. When the contract is closed or expired, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Options

Consistent with its investment policies, each Fund (excluding Harbor Money Market Fund) may use options contracts to manage its exposure to the stock and bond markets and to fluctuations in interest rates and currency values. Harbor High-Yield Bond Fund is not authorized to engage in options transactions on currencies. Harbor Bond Fund, Harbor Real Return Fund, and Harbor Short Duration Fund may use options on currencies for cross-hedging purposes. Call options tend to decrease a Fund’s exposure to the underlying instrument. Put options tend to increase a Fund’s exposure to the underlying instrument.

When a Fund purchases an option, the premium paid by the Fund is included in the Fund’s Statement of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the option’s current market value. Purchased options on futures contracts are valued based on the settlement price for the underlying futures contract. If the purchased option expires, the Fund realizes a loss in the amount of the premium. If the Fund enters into a closing sale transaction, it realizes a gain or loss, depending on whether the proceeds

29

Harbor Funds—Fixed Income Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

(Currency in thousands)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

from the sale are greater or less than the cost of the option. If the Fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid. The risk associated with purchasing options is limited to the premium originally paid.

When a Fund writes an option, the premium received by the Fund is presented in the Fund’s Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. Written options on equity securities are valued at the last sale price or, in the absence of a sale, the last offering price on the market on which they are principally traded. Written options on futures contracts are valued based on the settlement price for the underlying futures contract. If an option expires on its stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written call option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which the Fund purchases upon exercise of the option.

The risk in writing a call option is that the Fund relinquishes the opportunity to profit if the market price of the underlying security increases and the option is exercised. In writing a put option, the Fund assumes the risk of incurring a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is a risk the Fund may not be able to enter into a closing transaction because of an illiquid secondary market, or if the counterparties do not perform under the contracts’ terms.

Swap Agreements

To the extent permitted under their respective investment policies, Harbor Bond Fund, Harbor Real Return Fund and Harbor Short Duration Fund may invest in swap agreements which involve the exchange of cash payments based on the specified terms and conditions of such agreements. A swap is a privately negotiated agreement between two parties to exchange cash flows at specified intervals (payment dates) during the agreed-upon life of the contract. The value of each swap is determined by the counterparty to the swap agreement using a methodology which discounts the expected future cash receipts or disbursements related to the swap. The Funds may also enter into interest rate swap agreements which involve the exchange by the Fund with another party of their respective commitments to pay or receive interest, (e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). Interest rate swaps are marked-to-market daily.

Harbor High-Yield Bond Fund, Harbor Bond Fund, Harbor Real Return Fund and Harbor Short Duration Fund may enter into credit default swap agreements. The “buyer” in a credit default contract is obligated to pay the “seller” a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or “par value,” of the reference obligation in exchange for the reference obligation. A Fund may be either the buyer or seller in a credit default swap transaction. If a Fund is a buyer and no event of default occurs, the Fund will lose its investment and recover nothing. However, if an event of default occurs, the Fund (if the buyer) will receive the full notional value of the reference obligation that may have little or no value. As a seller, a Fund receives a fixed rate of income throughout the term of the contract, which typically is between six months and three years, provided that there is no default event. If an event of default occurs, the seller must pay the buyer the full notional value of the reference obligation.

Entering into swap agreements involves, to varying degrees, elements of credit risk, market risk, and interest rate risk in excess of the amount recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there is not a liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform and that there may be unfavorable changes in market conditions or interest rates.

Loan Participations and Assignments

Harbor High-Yield Bond Fund, Harbor Bond Fund, Harbor Real Return Fund and Harbor Short Duration Fund may invest in direct debt instruments which are interests in amounts owed by corporate, governmental, or other borrowers to lenders or lending syndicates. A

30

Harbor Funds—Fixed Income Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

(Currency in thousands)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.

Inflation-Indexed Bonds

Harbor Real Return Fund invests primarily in inflation-indexed bonds. Harbor Bond Fund and Harbor Short Duration Fund may also invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted based on the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income, even though investors do not receive their principal until maturity.

Mortgage-Related and Other Asset-Backed Securities

Harbor Bond Fund, Harbor Real Return Fund and Harbor Short Duration Fund may invest in mortgage- or other asset-backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (“SMBSs”) and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose a Fund to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

U.S. Government Securities

Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U. S. Government. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government.

TBA/When-Issued Purchase Commitments

Each Fund may enter into TBA (to be announced) and when-issued purchase commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price for a TBA has been established, the principal value has not been finalized. However, the amount of the commitment will not fluctuate more than 2.0% from the principal amount. The price of a when-issued security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated.

A Fund holds, and maintains until the settlement date, cash or liquid securities in an amount sufficient to meet the purchase price. TBA and when-issued purchase commitments may be considered securities in themselves and involve a risk of loss if the value of the security to be purchased declines prior to the settlement date, which risk is in addition to the risk of decline in the value of the Fund’s other assets.

31

Harbor Funds—Fixed Income Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

(Currency in thousands)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

Risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. Unsettled TBA and when-issued purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under “Security Valuation” above.

Although the Fund will generally enter into TBA and when-issued purchase commitments with the intention of acquiring securities for its portfolio, a Fund may dispose of a commitment prior to settlement if the Fund’s subadviser deems it appropriate to do so.

TBA Sale Commitments

Each Fund may enter into TBA sale commitments to hedge portfolio positions or to sell mortgage-backed securities owned under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date.

Unsettled TBA sale commitments are valued at the current market value of the underlying securities, generally according to the procedures described under “Security Valuation” above. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss on the commitment without regard to any unrealized gain or loss on the underlying security. If the Fund delivers securities under the commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date on which the commitment was entered.

Short Sales

Each Fund, except Harbor Money Market Fund, may engage in short-selling which obligates the Fund to replace the security borrowed by purchasing it at the market price at the time of replacement. Until the security is replaced, the Fund is required to pay to the lender any accrued interest or dividends, and may be required to pay a premium. The Fund would realize a gain if the security declines in price between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund would incur a loss as a result of the short sale if the price of the security increases between those dates. Until the Fund replaces the borrowed security, it will maintain in a segregated account or set aside in the Fund’s records cash or liquid securities sufficient to cover its short position. Short sales involve the risk of an unlimited increase in the market price of a security.

Foreign Forward Currency Contracts

Consistent with its investment policies, each Fund, except Harbor High-Yield Bond Fund and Harbor Money Market Fund, may enter into foreign forward currency contracts to facilitate transactions in foreign securities or as a hedge against either specific transactions or portfolio positions. A foreign forward currency contract is an agreement between two parties to buy and sell currencies at a set price on a future date. The U.S. dollar value of the contracts is determined using forward currency exchange rates supplied by a pricing service selected by the Adviser. The contract is marked-to-market daily and the change in market value is recorded as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value on the open and close date. Losses may arise from changes in the value of the foreign currency, or if the counterparties do not perform under the contract’s terms. The maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened; however, management of the Fund believes the likelihood of such loss is remote.

Foreign Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars based on the current exchange rates at period end. Purchases and sales of securities are translated into U.S. dollars at the current exchange rate on the respective dates of the transaction. Income and withholding taxes are translated at the prevailing exchange rate when accrued or incurred.

Reported net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income accrued and tax reclaims receivable and the U.S.

32

Harbor Funds—Fixed Income Funds

NOTES TO PORTFOLIOS OF INVESTMENTS—Continued

(Currency in thousands)

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES—Continued

dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are not isolated in the Statement of Operations from the effects of changes in market prices of these securities. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Repurchase Agreements

Each Fund may enter into repurchase agreements with certain banks and broker dealers whereby the Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. The Trust’s custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. The value of the underlying assets at the time of purchase is required to be at least equal to the repurchase price to protect the Fund in the event of default by the seller.

Borrowings

Harbor Short Duration Fund may enter into reverse repurchase agreements with third party broker-dealers. The Fund may use reverse repurchase agreements to borrow short term funds. Interest on the value of reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance. At the time the Fund enters into a reverse repurchase agreement, it establishes and maintains a segregated account with the lender containing liquid high-grade securities having a value not less than the repurchase price, including accrued interest, of the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities sold by a Fund may decline below the repurchase price of the securities and, if the proceeds from the reverse repurchase agreement are invested in securities, that the market value of securities bought may decline below the repurchase price of securities sold. Activity in reverse repurchase agreements by the Harbor Short Duration Fund for the nine-month period ended July 31, 2008 is as follows:

Category of Aggregate Short-Term Borrowings	Balance at End of Period		Average Interest Rate	Maximum Amount Outstanding During the Period		Average Daily Amount Outstanding During the Period		Average Interest Rate During the Period
Reverse repurchase agreements with maturity dates of 08/01/2008	$	0	N/A	$	30,863	$	1,216	3.96	%

NOTE 2—TAX INFORMATION

The identified cost for federal income tax purposes of investments owned by each Fund (including earned discount on corporate short-term notes and commercial paper) and their respective gross unrealized appreciation and depreciation at July 31, 2008 are as follows:

			Gross Unrealized					Net Unrealized Appreciation/ (Depreciation)
	Identified Cost		Appreciation		(Depreciation)
HARBOR FIXED INCOME FUND
Harbor High-Yield Bond Fund	$	55,706	$	252	$	(1,534	)	$	(1,282	)
Harbor Bond Fund*		4,898,128		8,273		(127,100	)		(118,827	)
Harbor Real Return Fund		155,956		727		(946	)		(219	)
Harbor Short Duration Fund*		76,423		470		(3,297	)		(2,827	)

* Capital loss carryforwards are available which may reduce taxable income from future net realized gain on investments.

33

111 South Wacker Drive, 34^th Floor Chicago, IL 60606-4302 1.800.422.1050 www.harborfunds.com

Trustees & Officers

David G. Van Hooser

Chairman, President & Trustee

Raymond J. Ball

Trustee

Howard P. Colhoun

Trustee

John P. Gould

Trustee

Rodger F. Smith

Trustee

Charles F. McCain

Chief Compliance Officer

Anmarie S. Kolinski

Treasurer

Erik D. Ojala

Vice President & Secretary

Brian L. Collins

Vice President

Charles P. Ragusa

Vice President

Jodie L. Crotteau

Assistant Secretary

Susan A. DeRoche

Assistant Secretary

Investment Adviser

Harbor Capital Advisors, Inc.

111 South Wacker Drive, 34^th Floor

Chicago, IL 60606-4302

Distributor & Principal Underwriter

Harbor Funds Distributors, Inc.

111 South Wacker Drive, 34^th Floor

Chicago, IL 60606-4302

312.443.4400

Shareholder Servicing Agent

Harbor Services Group, Inc.

P.O. Box 804660

Chicago, IL 60680-4108

1.800.422.1050

Custodian

State Street Bank & Trust Company

225 Franklin Street

Boston, MA 02110

Independent Registered Public Accounting Firm

Ernst & Young LLP

200 Clarendon Street

Boston, MA 02116

Legal Counsel

Wilmer Cutler Pickering Hale and Dorr LLP

60 State Street

Boston, MA 02109

FD.QSOPH.FIF